[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4511 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4511

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  charitable distributions from certain employer-sponsored retirement 
                     plans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 13, 2026

   Mr. Cramer (for himself, Mr. Coons, Mr. Marshall, and Mr. Warner) 
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 exclude from gross income 
  charitable distributions from certain employer-sponsored retirement 
                     plans, and for other purposes.

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

SECTION 1. EXCLUSION FROM GROSS INCOME OF CHARITABLE DISTRIBUTIONS FROM 
              CERTAIN EMPLOYER-SPONSORED RETIREMENT PLANS.

    (a) In General.--Section 402 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(m) Distributions for Charitable Purposes.--
            ``(1) In general.--Gross income for any taxable year shall 
        not include so much of the aggregate amount of qualified 
        charitable distributions made with respect to a taxpayer during 
        such taxable year which does not exceed the applicable amount.
            ``(2) Qualified charitable distribution.--For purposes of 
        this subsection, the term `qualified charitable distribution' 
        means any distribution from a qualified employer plan--
                    ``(A) which is made directly by the plan to an 
                organization described in section 170(b)(1)(A) (other 
                than any organization described in section 509(a)(3) or 
                any fund or account described in section 4966(d)(2)), 
                and
                    ``(B) which is made on or after the date that the 
                individual on whose behalf the distribution is made has 
                attained age 70\1/2\.
        A distribution shall be treated as a qualified charitable 
        distribution only to the extent that the distribution would be 
        includible in gross income without regard to paragraph (1).
            ``(3) Special rules.--
                    ``(A) In general.--Rules similar to the rules of 
                subparagraphs (C), (E), and (F) of section 408(d)(8) 
                shall apply for purposes of this subsection.
                    ``(B) Application of section 72.--Rules similar to 
                the rules of section 408(d)(8)(D) shall apply for 
                purposes of this subsection, by taking into account all 
                amounts to which the taxpayer has a nonforfeitable 
                right in all qualified employer plans maintained by the 
                employer in lieu of all amounts in all individual 
                retirement plans of the individual.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Applicable amount.--The term `applicable 
                amount' means the excess of--
                            ``(i) the dollar amount in effect under 
                        section 408(d)(8) for the taxable year, over
                            ``(ii) the total amount of distributions 
                        not includible in the gross income of the 
                        taxpayer for the taxable year by reason of 
                        section 408(d)(8).
                    ``(B) Qualified employer plan.--The term `qualified 
                employer plan' means--
                            ``(i) an eligible retirement plan described 
                        in clause (iii) or (vi) of subsection 
                        (c)(8)(B), or
                            ``(ii) a plan established for its employees 
                        by the United States, by a State or political 
                        subdivision thereof, or by an agency or 
                        instrumentality of any of the foregoing.''.
    (b) SEPs and SIMPLEs.--Section 408(d)(8)(B) of such Code is amended 
by striking ``(other than a plan described in subsection (k) or (p))''.
    (c) 403(b) Plans.--Section 403 of such Code is amended by adding at 
the end the following new subsection:
    ``(d) Distributions for Charitable Purposes.--The rules of section 
402(m) shall apply to distributions under an annuity contract described 
in subsection (b).''.
    (d) 457(b) Plans.--Section 457(e) of such Code is amended by adding 
at the end the following new paragraph:
            ``(19) Distributions for charitable purposes.--The rules of 
        section 402(m) shall apply to distributions under an eligible 
        deferred compensation plan established and maintained by an 
        eligible employer described in subsection (e)(1)(A).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to distributions made in taxable years beginning after the date 
of the enactment of this Act.
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