I 

117TH CONGRESS 

1ST SESSION H. R. 2909 

To amend the Internal Revenue Code of 1986 to allow a one-time election 

for a qualified charitable distribution to a split-interest entity and to 

inflation adjust the limits for qualified charitable distributions. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 30, 2021 

Mr. BEYER (for himself and Mr. KELLY of Pennsylvania) 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 allow a 

one-time election for a qualified charitable distribution 

to a split-interest entity and to inflation adjust the limits 

for qualified charitable distributions. 

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

3 SECTION 1. ONE-TIME ELECTION FOR QUALIFIED CHARI4 TABLE DISTRIBUTION TO SPLIT-INTEREST 

5 ENTITY; INCREASE IN QUALIFIED CHARI6 TABLE DISTRIBUTION LIMITATION. 

7 (a) ONE-TIME ELECTION FOR QUALIFIED CHARI8 TABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY.— 


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1 Section 408(d)(8) of such Code is amended by adding at 

2 the end the following new subparagraph: 

3 ‘‘(F) ONE-TIME ELECTION FOR QUALIFIED

4 CHARITABLE DISTRIBUTION TO SPLIT-INTEREST

5 ENTITY.— 

6 ‘‘(i) IN GENERAL.—A taxpayer may 

7 for a taxable year elect under this subpara8 graph to treat as meeting the requirement 

9 of subparagraph (B)(i) any distribution 

10 from an individual retirement account 

11 which is made directly by the trustee to a 

12 split-interest entity, but only if— 

13 ‘‘(I) an election is not in effect 

14 under this subparagraph for a pre15 ceding taxable year, 

16 ‘‘(II) the aggregate amount of 

17 distributions of the taxpayer with re18 spect to which an election under this 

19 subparagraph does not exceed 

20 $50,000, and 

21 ‘‘(III) such distribution meets the 

22 requirements of clauses (iii) and (iv). 

23 ‘‘(ii) SPLIT-INTEREST ENTITY.—For 

24 purposes of this subparagraph, the term 

25 ‘split-interest entity’ means— 


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1 ‘‘(I) a charitable remainder annu2 ity trust (as defined in section 

3 664(d)(1)), but only if such trust is 

4 funded exclusively by qualified chari5 table distributions, 

6 ‘‘(II) a charitable remainder 

7 unitrust (as defined in section 

8 664(d)(2)), but only if such unitrust 

9 is funded exclusively by qualified char10 itable distributions, or 

11 ‘‘(III) a charitable gift annuity 

12 (as defined in section 501(m)(5)), but 

13 only if such annuity is funded exclu14 sively by qualified charitable distribu15 tions and commences fixed payments 

16 of 5 percent or greater not later than 

17 1 year from the date of funding. 

18 ‘‘(iii) CONTRIBUTIONS MUST BE OTH19 ERWISE DEDUCTIBLE.—A distribution 

20 meets the requirement of this clause only 

21 if— 

22 ‘‘(I) in the case of a distribution 

23 to a charitable remainder annuity 

24 trust or a charitable remainder uni25 trust, a deduction for the entire value 


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1 of the remainder interest in the dis2 tribution for the benefit of a specified 

3 charitable organization would be al4 lowable under section 170 (determined 

5 without regard to subsection (b) 

6 thereof and this paragraph), and 

7 ‘‘(II) in the case of a charitable 

8 gift annuity, a deduction in an 

9 amount equal to the amount of the 

10 distribution reduced by the value of 

11 the annuity described in section 

12 501(m)(5)(B) would be allowable 

13 under section 170 (determined with14 out regard to subsection (b) thereof 

15 and this paragraph). 

16 ‘‘(iv) LIMITATION ON INCOME INTER17 ESTS.—A distribution meets the require18 ments of this clause only if— 

19 ‘‘(I) no person holds an income 

20 interest in the split-interest entity 

21 other than the individual for whose 

22 benefit such account is maintained, 

23 the spouse of such individual, or both, 

24 and 


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1 ‘‘(II) the income interest in the 

2 split-interest entity is nonassignable. 

3 ‘‘(v) SPECIAL RULES.— 

4 ‘‘(I) CHARITABLE REMAINDER

5 TRUSTS.—Notwithstanding section 

6 664(b), distributions made from a 

7 trust described in subclause (I) or (II) 

8 of clause (ii) shall be treated as ordi9 nary income in the hands of the bene10 ficiary to whom the annuity described 

11 in section 664(d)(1)(A) or the pay12 ment described in section 

13 664(d)(2)(A) is paid. 

14 ‘‘(II) CHARITABLE GIFT ANNU15 ITIES.—Qualified charitable distribu16 tions made to fund a charitable gift 

17 annuity shall not be treated as an in18 vestment in the contract for purposes 

19 of section 72(c).’’. 

20 (b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 

21 such Code, as amended by subsection (a), is amended by 

22 adding at the end the following new subparagraph: 

23 ‘‘(G) INFLATION ADJUSTMENT.— 

24 ‘‘(i) IN GENERAL.—In the case of any 

25 taxable year beginning after 2022, each of 


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1 the dollar amounts in subparagraphs (A) 

2 and (F) shall be increased by an amount 

3 equal to— 

4 ‘‘(I) such dollar amount, multi5 plied by 

6 ‘‘(II) the cost-of-living adjust7 ment determined under section 1(f)(3) 

8 for the calendar year in which the tax9 able year begins, determined by sub10 stituting ‘calendar year 2021’ for ‘cal11 endar year 2016’ in subparagraph 

12 (A)(ii) thereof. 

13 ‘‘(ii) ROUNDING.—If any dollar 

14 amount increased under clause (i) is not a 

15 multiple of $1,000, such dollar amount 

16 shall be rounded to the nearest multiple of 

17 $1,000.’’. 

18 (c) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to distributions made in taxable 

20 years ending after the date of the enactment of this Act. 

Æ 


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