A bill to amend the Internal Revenue Code of 1986 to exclude from gross income charitable distributions from certain employer-sponsored retirement plans, and for other purposes.

This bill would change federal tax law so that people age 70½ or older could give money directly from certain employer retirement plans, such as 401(k), 403(b), and government 457(b) plans, to qualifying charities without counting it as taxable income. The tax-free amount would be capped at the same yearly dollar limit that applies to charitable gifts from IRAs, minus any amount already given tax-free from IRAs that year. The money must go straight from the plan to the charity, and certain supporting organizations and donor-advised funds would not qualify. The bill would also allow these charitable distributions from SEP and SIMPLE IRAs, and would apply to distributions in tax years starting after it becomes law.

Full text and official record on Congress.gov

Sponsors

• Kevin Cramer Republican sponsor
• 3 cosponsors