[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1446 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1446

    To amend the Internal Revenue Code of 1986 to allow a tax-free 
  distribution from qualified retirement plan to the extent that the 
          distribution is contributed for charitable purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 1999

  Mr. Duncan introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to allow a tax-free 
 distribution from a qualified retirement plan to the extent that the 
          distribution is contributed for charitable purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAX-FREE DISTRIBUTIONS FROM PROFIT-SHARING PENSION PLANS FOR 
              CERTAIN CHARITABLE PURPOSES.

    (a) In General.--Section 401 of the Internal Revenue Code of 1986 
(relating to qualified pension, profit-sharing, and stock bonus plans) 
is amended by redesignating subsection (o) as subsection (p) and by 
inserting after subsection (n) the following new subsection:
    ``(o) Distributions for Charitable Purposes.--
            ``(1) In general.--A trust forming part of a profit-sharing 
        or pension plan shall not be treated as failing to constitute a 
        qualified trust under this section merely because the stock 
        bonus, profit-sharing or pension plan of which such trust is a 
        part makes 1 or more qualified charitable distributions.
            ``(2) Exclusion from income.--No amount shall be includible 
        in the gross income of a plan participant by reason of a 
        qualified charitable distribution (irrespective of whether such 
        qualified charitable distribution is made with respect to a 
        charitable pledge of such plan participant) from a stock bonus, 
        profit-sharing or pension plan--
                    ``(A) to an organization described in section 
                170(c),
                    ``(B) to a charitable remainder annuity trust or a 
                charitable remainder unitrust (as such terms are 
                defined in section 664(d)),
                    ``(C) to a pooled income fund (as defined in 
                section 642(c)(5)), or
                    ``(D) for the issuance of a charitable gift annuity 
                (as defined in section 501(m)(5)).
            ``(3) Special rules relating to charitable remainder 
        trusts, pooled income funds, and charitable gift annuities.--
                    ``(A) In general.--Paragraph (2) shall apply to a 
                trust, fund, or annuity referred to in subparagraph 
                (B), (C), or (D) of paragraph (2) only if no person 
                holds an income interest in the amounts in the trust, 
                fund, or annuity attributable to such distribution 
                other than one or more of the following:
                            ``(i) the individual for whose benefit 
                        amounts in the stock bonus, or profit-sharing 
                        pension plan are maintained and from which such 
                        distribution was made,
                            ``(ii) the spouse of such individual, or
                            ``(iii) any organization described in 
                        section 170(c)(2).
                    ``(B) Determination of inclusion of amounts 
                distributed.--In determining the amount includible in 
                the gross income of any person by reason of a payment 
                or distribution from a trust referred to in paragraph 
                (2)(B) or a charitable gift annuity (as so defined), 
                the portion of any qualified charitable distribution to 
                such trust or for such annuity which would (but for 
                this paragraph) have been includible in gross income--
                            ``(i) shall be treated as income described 
                        in section 664(b)(1), and
                            ``(ii) shall not be treated as an 
                        investment in the contract.
                    ``(C) No inclusion for distribution to pooled 
                income fund.--No amount shall be includible in the 
                gross income of a pooled income fund (as so defined) by 
                reason of a qualified charitable distribution to such 
                fund.
            ``(4) Qualified charitable distribution.--For purposes of 
        this subsection, the term `qualified charitable distribution' 
        means any transfer or distribution from amounts in a stock 
        bonus, or profit-sharing pension plan maintained for the 
        benefit of an individual--
                    ``(A) which is made on or after the date that such 
                individual has attained age 59\1/2\, and
                    ``(B) which is made directly from such plan to--
                            ``(i) an organization described in section 
                        170(c)(2), or
                            ``(ii) a trust, fund, or annuity referred 
                        to in subparagraph (B), (C), or (D) of 
                        paragraph (2).
                    ``(5) Denial of deduction.--No deduction under 
                section 170 shall be allowable to a taxpayer for the 
                taxable year for the qualified charitable distributions 
                made during such year with respect to such taxpayer.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to distributions made after the date of the enactment of this 
Act.
                                 <all>