[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1375 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1375
To amend the Internal Revenue Code of 1986 to allow tax-free
distributions from individual retirement accounts for charitable
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 3, 2001
Mr. Dorgan introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow tax-free
distributions from individual retirement accounts for charitable
purposes.
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 ``Public Good IRA Rollover Act''.
SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS FOR
CHARITABLE PURPOSES.
(a) In General.--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 for charitable purposes.--
``(A) In general.--No amount shall be includible in
gross income by reason of a qualified charitable
distribution from an individual retirement account to
an organization described in section 170(c).
``(B) Special rules relating to charitable
remainder trusts, pooled income funds, and charitable
gift annuities.--
``(i) In general.--No amount shall be
includible in gross income by reason of a
qualified charitable distribution from an
individual retirement account--
``(I) to a charitable remainder
annuity trust or a charitable remainder
unitrust (as such terms are defined in
section 664(d)),
``(II) to a pooled income fund (as
defined in section 642(c)(5)), or
``(III) for the issuance of a
charitable gift annuity (as defined in
section 501(m)(5)).
The preceding sentence shall apply 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: the individual for whose benefit
such account is maintained, the spouse of such
individual, or any organization described in
section 170(c).
``(ii) 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 described in clause (i)(I) 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 subparagraph) have
been includible in gross income--
``(I) in the case of any such
trust, shall be treated as income
described in section 664(b)(1), or
``(II) in the case of any such
annuity, shall not be treated as an
investment in the contract.
``(iii) 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.
``(C) Qualified charitable distribution.--For
purposes of this paragraph, the term `qualified
charitable distribution' means any distribution from an
individual retirement account--
``(i) which is made on or after the date
that the individual for whose benefit the
account is maintained has attained age 70\1/2\,
except that with respect to any distribution to
a trust, fund, or annuity referred to in
subparagraph (B) which is made on or after the
date that the individual for whose benefit the
account is maintained has attained age 59\1/2\,
and
``(ii) which is made directly from the
account to--
``(I) an organization described in
section 170(c), or
``(II) a trust, fund, or annuity
referred to in subparagraph (B).
``(D) Denial of deduction.--Qualified charitable
distributions shall not be taken into account in
determining the deduction under section 170.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2001.
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