I

106TH CONGRESS

1ST SESSION H. R. 1311

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.

IN THE HOUSE OF REPRESENTATIVES

MARCH 25, 1999

Mr. CRANE (for himself and Mr. NEAL of Massachusetts) introduced the

following bill; which was referred to the Committee on Ways and Means

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.

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 ‘‘IRA Charitable Roll5 over Incentive Act of 1999’’.
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1 SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE2 TIREMENT ACCOUNTS FOR CHARITABLE

3 PURPOSES.

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

5 the Internal Revenue Code of 1986 (relating to individual

6 retirement accounts) is amended by adding at the end the

7 following new paragraph:

8 ‘‘(8) DISTRIBUTIONS FOR CHARITABLE PUR9 POSES.—

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

11 includible in gross income by reason of a quali12 fied charitable distribution from an individual

13 retirement account to an organization described

14 in section 170(c).

15 ‘‘(B) SPECIAL RULES RELATING TO CHARI16 TABLE REMAINDER TRUSTS, POOLED INCOME

17 FUNDS, AND CHARITABLE GIFT ANNUITIES.—

18 ‘‘(i) IN GENERAL.—No amount shall

19 be includible in gross income by reason of

20 a qualified charitable distribution from an

21 individual retirement account—

22 ‘‘(I) to a charitable remainder

23 annuity trust or a charitable remain24 der unitrust (as such terms are de25 fined in section 664(d)),
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1 ‘‘(II) to a pooled income fund (as

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

3 ‘‘(III) for the issuance of a chari4 table gift annuity (as defined in sec5 tion 501(m)(5)).

6 The preceding sentence shall apply only if

7 no person holds an income interest in the

8 amounts in the trust, fund, or annuity at9 tributable to such distribution other than

10 one or more of the following: the individual

11 for whose benefit such account is main12 tained, the spouse of such individual, or

13 any organization described in section

14 170(c).

15 ‘‘(ii) DETERMINATION OF INCLUSION

16 OF AMOUNTS DISTRIBUTED.—In deter17 mining the amount includible in the gross

18 income of any person by reason of a pay19 ment or distribution from a trust referred

20 to in clause (i)(I) or a charitable gift annu21 ity (as so defined), the portion of any

22 qualified charitable distribution to such

23 trust or for such annuity which would (but

24 for this subparagraph) have been includible

25 in gross income—
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1 ‘‘(I) shall be treated as income

2 described in section 664(b)(1), and

3 ‘‘(II) shall not be treated as an

4 investment in the contract.

5 ‘‘(iii) NO INCLUSION FOR DISTRIBU6 TION TO POOLED INCOME FUND.—No

7 amount shall be includible in the gross in8 come of a pooled income fund (as so de9 fined) by reason of a qualified charitable

10 distribution to such fund.

11 ‘‘(C) QUALIFIED CHARITABLE DISTRIBU12 TION.—For purposes of this paragraph, the

13 term ‘qualified charitable distribution’ means

14 any distribution from an individual retirement

15 account—

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

17 date that the individual for whose benefit

18 the account is maintained has attained age

591 19 ⁄2, and

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

21 account to—

22 ‘‘(I) an organization described in

23 section 170(c), or

24 ‘‘(II) a trust, fund, or annuity re25 ferred to in subparagraph (B).
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1 ‘‘(D) DENIAL OF DEDUCTION.—The

2 amount allowable as a deduction under section

3 170 to the taxpayer for the taxable year shall

4 be reduced (but not below zero) by the sum of

5 the amounts of the qualified charitable distribu6 tions during such year which would be includ7 ible in the gross income of the taxpayer for

8 such year but for this paragraph.’’

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

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

11 the date of the enactment of this Act.

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