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.

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.