[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4426 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 4426

To amend the Internal Revenue Code of 1986 to modify rules relating to 
             beneficiaries of charitable remainder trusts.


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                   IN THE SENATE OF THE UNITED STATES

                             June 16, 2022

 Mr. Young (for himself and Ms. Hassan) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify rules relating to 
             beneficiaries of charitable remainder trusts.

    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 ``Special Needs Trust Improvement Act 
of 2022''.

SEC. 2. TREATMENT OF CHARITABLE REMAINDER BENEFICIARIES IN APPLICABLE 
              MULTI-BENEFICIARY TRUSTS UNDER DEFINED CONTRIBUTION PLAN 
              DISTRIBUTION RULES AFTER DEATH OF EMPLOYEE.

    (a) In General.--Section 401(a)(9)(H)(iv)(II) of the Internal 
Revenue Code of 1986 is amended by striking ``no individual'' and 
inserting ``no beneficiary''.
    (b) Applicable Multi-Beneficiary Trust Definition.--Section 
401(a)(9)(H)(v) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following flush text:
                        ``For purposes of the preceding sentence, in 
                        the case of a trust the terms of which are 
                        described in clause (iv)(II), any beneficiary 
                        which is an organization described in section 
                        408(d)(8)(B)(i) shall be treated as a 
                        designated beneficiary described in subclause 
                        (II).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in section 401 of the Setting Every Community Up 
for Retirement Enhancement Act of 2019.
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