On March 4, the N.C. House of Representatives overwhelmingly approved an amendment to a bill (S.20) that would have protected the state tax treatment of charitable contributions that seniors make from their individual retirement accounts (IRAs). Thanks to Rep. Rick Catlin (R-New Hanover) for sponsoring the amendment, which passed by a 109-7 vote.
Potential Tax Increases from Not Conforming on the IRA Charitable Rollover
In 2013 and 2014, North Carolina decoupled from the extension of tax-free distributions from IRAs to public charities (the IRA charitable rollover). The 2016 IRC Update legislation (S.726) would decouple on this provision again for 2015 and future tax years. This tax change creates a significant tax increase for some retired North Carolinians who made charitable contributions from their IRAs.