119th (2025–2027)
H.R. 8783
This bill allows people age 70½ and older to make direct charitable donations from certain employer-sponsored retirement plans without counting those distributions as taxable income. Currently, similar rules exist for individual retirement accounts (IRAs), but this legislation extends that tax benefit to 401(k) plans, 403(b) plans (used by nonprofits and schools), 457(b) plans (used by government employees), and SEP and SIMPLE IRAs. The tax exclusion would apply to donations up to a certain annual limit that matches the existing IRA charitable distribution limit. The change would take effect for donations made in tax years after the bill is enacted, benefiting retirees who want to support charities while managing their tax obligations and those required to withdraw retirement funds at older ages.