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.
Sen. Cramer and Bipartisan Group Push to Allow Tax-Free Charity Donations From 401(k)s
This bill is currently in the Senate Committee on Finance for review. It was recently introduced and has not yet been scheduled for a vote. The bill is still in the early stages of the legislative process.
Legislative Progress
The bill has strong support from both Republicans and Democrats in the Senate. While many tax bills struggle to pass alone, this could be added to a larger year-end package.
Key Points
Impact Analysis
Personal Impact
Life & Work
Small business owners who saved for retirement through SEP IRAs or SIMPLE IRAs were previously excluded from using those accounts for qualified charitable distributions. This bill removes that restriction, letting retired small business owners donate directly from those accounts tax-free.
“Section 408(d)(8)(B) of such Code is amended by striking ``(other than a plan described in subsection (k) or (p))''.”
Programs
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
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.
Related News
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New Bill Would Expand Tax-Free Charitable Giving From DC Plans
A bill introduced in Congress would enable Americans to make tax-free charitable donations directly from their employer-sponsored retirement accounts, expanding a benefit currently limited largely to individual retirement accounts. The bipartisan 'Charity Parity Act' was introduced May 13.
Bipartisan bill aims to take down 401(k) charitable giving hurdle
The Charity Parity Act, introduced in the House and Senate, would extend qualified charitable distributions (QCDs) to employer-sponsored retirement plans like 401(k)s. Currently, retirees must roll funds into an IRA before making tax-free donations, a process the bill seeks to eliminate.
Latest Bill Opens Door for Charitable Giving in Retirement Plans
The Charity Parity Act would allow seniors to make tax-free charitable donations directly from workplace retirement accounts like 401(k)s and 403(b)s. The bill aims to provide 'equal treatment' for savers regardless of where their assets are held, removing administrative hurdles for retirees.
Source Information
Document Type
Congressional Bill
Official Title
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.
Data Sources
Sponsor
Cosponsors
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