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.
Retirement Savings: Tax-Free Donations to Charity
This bill is currently in the early stages of the legislative process. It was recently sent to the House Committee on Ways and Means for review. No further actions are scheduled at this time.
Legislative Progress
The bill has support from both parties and sponsors on the tax committee, but it may need to be part of a larger tax package to pass.
Key Points
- This bill lets people who are at least 70 1/2 years old send money from their workplace retirement plans directly to a charity. This money would not count as part of their taxable income for the year.
- Right now, this tax-free giving is mostly allowed for IRAs. This change would expand the rule to include other popular plans like 401(k)s, 403(b)s used by teachers, and 457(b)s used by government workers.
- The total amount a person can give tax-free each year is capped. This bill keeps that limit the same but lets people use more types of accounts to reach it.
- This helps seniors who want to give to charity but do not want to pay extra taxes on the money they withdraw. It also simplifies the rules so different retirement plans work the same way.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
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.
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.