[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.
                                 <all>