X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-As President George W. Bush signed The Working Families Tax Relief Act of 2004 (H.R. 1308) into law last week to extend the marriage penalty tax cuts and child tax credits, credit unions also officially regained an authority that had slipped through a technical crack. While doing research work for the charitable giving bill in the Senate that would permit credit unions to offer Individual Development Accounts, NCUA Associate Director of External Affairs Gail Noren stumbled upon a costly omission for federal credit unions. When the Federal Credit Union Act was updated in the mid-1980s, she said, the Internal Revenue Code (IRC) was never modified to reflect the changes. Consequently, the IRC only referenced state-chartered credit unions with regard to offering Individual Retirement Accounts and omitted federal credit unions, Noren explained, though congressional intent was clear. A legislative amendment was necessary to fix the problem, Noren said. The error could also have impacted credit unions’ ability to offer IDAs and Health Savings Accounts. “It’s really a technical fix that needed to be done,” NAFCU Director of Legislative and Political Affairs Brad Thaler said. His organization learned of the problem earlier this year from Noren and had quietly been working to usher it through Congress, along with NCUA. Apparently, their work paid off. The technical correction added onto H.R. 1308 sailed through Congress without any trouble, according to Thaler. He added that he was not sure if the banking groups ever got wind of the problem. “We didn’t want to bring a lot of attention to this and make it a political issue,” he said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.