Highlight any text to annotate

This bill allows individuals age 70½ and older to make charitable donations directly from their employer-sponsored retirement plans without paying income taxes on those distributions. The provision applies to traditional 401(k) plans, 403(b) plans (commonly used by nonprofits and schools), 457(b) plans (for government employees), and simplified employee pension plans. The charitable gifts must go directly from the plan to eligible charitable organizations, and the amount excluded from taxable income cannot exceed the annual limit that already applies to similar charitable distributions from individual retirement accounts. The bill takes effect for any charitable distributions made after it is enacted into law. This change is intended to encourage charitable giving among retirees by providing a tax benefit.

Add a comment

Sign in to comment on this bill.

Annotate the text

Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.