II

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 taxfree distributions from individual retirement accounts for

charitable purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Public Good IRA Roll5 over Act’’.

6 SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE7 TIREMENT ACCOUNTS FOR CHARITABLE

8 PURPOSES.

9 (a) IN GENERAL.—Subsection (d) of section 408 of

10 the Internal Revenue Code of 1986 (relating to individual
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1 retirement accounts) is amended by adding at the end the

2 following new paragraph:

3 ‘‘(8) DISTRIBUTIONS FOR CHARITABLE PUR4 POSES.—

5 ‘‘(A) IN GENERAL.—No amount shall be

6 includible in gross income by reason of a quali7 fied charitable distribution from an individual

8 retirement account to an organization described

9 in section 170(c).

10 ‘‘(B) SPECIAL RULES RELATING TO CHARI11 TABLE REMAINDER TRUSTS, POOLED INCOME

12 FUNDS, AND CHARITABLE GIFT ANNUITIES.—

13 ‘‘(i) IN GENERAL.—No amount shall

14 be includible in gross income by reason of

15 a qualified charitable distribution from an

16 individual retirement account—

17 ‘‘(I) to a charitable remainder

18 annuity trust or a charitable remain19 der unitrust (as such terms are de20 fined in section 664(d)),

21 ‘‘(II) to a pooled income fund (as

22 defined in section 642(c)(5)), or

23 ‘‘(III) for the issuance of a chari24 table gift annuity (as defined in sec25 tion 501(m)(5)).
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1 The preceding sentence shall apply only if

2 no person holds an income interest in the

3 amounts in the trust, fund, or annuity at4 tributable to such distribution other than

5 one or more of the following: the individual

6 for whose benefit such account is main7 tained, the spouse of such individual, or

8 any organization described in section

9 170(c).

10 ‘‘(ii) DETERMINATION OF INCLUSION

11 OF AMOUNTS DISTRIBUTED.—In deter12 mining the amount includible in the gross

13 income of any person by reason of a pay14 ment or distribution from a trust described

15 in clause (i)(I) or a charitable gift annuity

16 (as so defined), the portion of any qualified

17 charitable distribution to such trust or for

18 such annuity which would (but for this

19 subparagraph) have been includible in

20 gross income—

21 ‘‘(I) in the case of any such

22 trust, shall be treated as income de23 scribed in section 664(b)(1), or
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1 ‘‘(II) in the case of any such an2 nuity, shall not be treated as an in3 vestment in the contract.

4 ‘‘(iii) NO INCLUSION FOR DISTRIBU5 TION TO POOLED INCOME FUND.—No

6 amount shall be includible in the gross in7 come of a pooled income fund (as so de8 fined) by reason of a qualified charitable

9 distribution to such fund.

10 ‘‘(C) QUALIFIED CHARITABLE DISTRIBU11 TION.—For purposes of this paragraph, the

12 term ‘qualified charitable distribution’ means

13 any distribution from an individual retirement

14 account—

15 ‘‘(i) which is made on or after the

16 date that the individual for whose benefit

17 the account is maintained has attained age

701 18 ⁄2, except that with respect to any dis19 tribution to a trust, fund, or annuity re20 ferred to in subparagraph (B) which is

21 made on or after the date that the indi22 vidual for whose benefit the account is

maintained has attained age 591 23 ⁄2, and

24 ‘‘(ii) which is made directly from the

25 account to—
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1 ‘‘(I) an organization described in

2 section 170(c), or

3 ‘‘(II) a trust, fund, or annuity re4 ferred to in subparagraph (B).

5 ‘‘(D) DENIAL OF DEDUCTION.—Qualified

6 charitable distributions shall not be taken into

7 account in determining the deduction under sec8 tion 170.’’.

9 (b) EFFECTIVE DATE.—The amendment made by

10 subsection (a) shall apply to taxable years beginning after

11 December 31, 2001.

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