[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4433 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4433

    To amend the Internal Revenue Code of 1986 to waive the income 
inclusion on a distribution from an individual retirement account or a 
section 401(k) plan to the extent that the distribution is contributed 
                             to a charity.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2000

   Mr. Franks of New Jersey 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 waive the income 
inclusion on a distribution from an individual retirement account or a 
section 401(k) plan to the extent that the distribution is contributed 
                             to a charity.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charitable Contribution Tax Relief 
Act of 2000''.

SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS AND 
              SECTION 401(K) PLANS TO CHARITIES.

    (a) Individual Retirement Accounts.--Subsection (d) of section 408 
of the Internal Revenue Code of 1986 (relating to individual retirement 
accounts) is amended by adding at the end the following new paragraph:
            ``(8) Distributions to charities.--
                    ``(A) In general.--No amount shall be includible in 
                gross income by reason of a distribution from an 
                individual retirement account directly to an 
                organization described in section 170(c).
                    ``(B) Denial of deduction.--The amount allowable as 
                a deduction under section 170 to the taxpayer for the 
                taxable year shall be reduced (but not below zero) by 
                the sum of the amounts of the distributions during such 
                year which would be includible in the gross income of 
                the taxpayer for such year but for this paragraph.''
    (b) Section 401(k) Plans.--Subsection (k) of section 401 of such 
Code is amended by adding at the end the following new paragraph:
            ``(13) Distributions to charities.--
                    ``(A) In general.--A qualified cash or deferred 
                arrangement shall not fail to be treated as such by 
                reason of permitting distributions directly to an 
                organization described in section 170(c), and no amount 
                shall be includible in gross income by reason of such a 
                distribution.
                    ``(B) Denial of deduction.--The amount allowable as 
                a deduction under section 170 to the taxpayer for the 
                taxable year shall be reduced (but not below zero) by 
                the sum of the amounts of the distributions during such 
                year which would be includible in the gross income of 
                the taxpayer for such year but for this paragraph.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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