[Congressional Record Volume 145, Number 74 (Thursday, May 20, 1999)]
[Senate]
[Page S5739]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. Durbin, Mr. Helms, and Mrs. 
        Feinstein):
  S. 1086. A bill to amend the Internal Revenue Code of 1986 to waive 
the income inclusion on a distribution from an individual retirement 
account to the extent that the distribution is contributed for 
charitable purposes; to the Committee on Finance.


                      IRA Rollover to Charity Act

 Mrs. HUTCHISON. Mr. President, today, I am pleased to 
introduce, along with Senator Durbin, the IRA Rollover to Charity Act 
of 1999. This legislation has the support of numerous charitable 
organizations across the United States. The effect of this bill would 
be to unlock billions of dollars in savings Americans hold and make 
them available to charity.
  Mr. President, the legislation will allow individuals to roll assets 
from an Individual Retirement Account (IRA) into a charity or a 
deferred charitable gift plan without incurring any income tax 
consequences. Thus, the donation would be made to charity without ever 
withdrawing it as income and paying tax on it.
  Americans hold well over $1 trillion in assets in IRAs. Nearly half 
of America's families have IRAs. Recent studies show that assets of 
qualified retirement plans comprise a substantial part of the net worth 
of many persons. Many individuals would like to give a portion of these 
assets to charity.
  Under current law, if an IRA is transferred into a charitable 
remainder trust, donors are required to recognize all such income. 
Therefore, absent the changes called for in the legislation, the donor 
will have taxable income in the year the gift is funded. The IRA 
Rollover to Charity Act lifts the disincentives contained in our 
complicated and burdensome tax code and will unleash a critical source 
of funding for our nation's charities. This is a common sense way to 
remove obstacles to private charitable giving.
  Under the legislation, upon reaching age 59\1/2\, an individual could 
move assets penalty-free from an IRA directly to charity or into a 
qualifying deferred charitable gift plan--e.g. charitable reminder 
trusts, pooled income funds and gift annuities. In the latter case the 
donor would be able to receive an income stream from the retirement 
plan assets, which would be taxed according to normal rules. Upon the 
death of the individual, the remainder would be transferred to charity.
  Mr. President, I hope the Senate will join in this effort to provide 
a valuable new source of philanthropy for our nation's charities. This 
legislation has the support of numerous universities and charitable 
groups, including the Charitable Accord, an umbrella organization 
representing more than 1,000 organizations and associations.
  Mr. President, I have just returned from the Balkans. I have seen 
first hand the wonderful work that is being done by charitable groups 
in dealing with the massive refugee crisis that has occurred there. As 
terrible as this crisis has been, it would be worse if not for the 
great work that is being done by charitable groups. Our bill will help 
direct additional resources to those charities and thousands of others. 
I urge my colleagues to co-sponsor this legislation.
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