II 

108TH CONGRESS 

1ST SESSION S. 209

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 SENATE OF THE UNITED STATES 

JANUARY 23, 2003

Mrs. HUTCHISON (for herself, Mr. DURBIN, Mr. CORNYN, Mr. LEVIN, Mr. 

DEWINE, Mr. COCHRAN, Mr. FITZGERALD, and Mr. ALLEN) 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 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 ‘‘Charitable IRA Roll5 over Act of 2003’’. 
2

•S 209 IS

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)), 
3

•S 209 IS

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—
4

•S 209 IS

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). 
5

•S 209 IS

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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