I 
114TH CONGRESS 
2D SESSION 
H. R. 5171 
To amend the Internal Revenue Code of 1986 to expand tax-free distributions 
from individual retirement accounts to include rollovers for charitable 
life-income plans for charitable purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2016 
Mr. ROSKAM (for himself, Mr. BLUMENAUER, Mr. CRAMER, Mr. TIBERI, and 
Mr. PAULSEN) 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 expand 
tax-free distributions from individual retirement accounts 
to include rollovers for charitable life-income plans for 
charitable purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Legacy IRA Act’’. 
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SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE-
TIREMENT 
ACCOUNTS 
FOR 
CHARITABLE 
PURPOSES. 
(a) IN GENERAL.—Paragraph (8) of section 408(d) 
of the Internal Revenue Code of 1986 (relating to tax 
treatment of distributions) is amended to read as follows: 
‘‘(8) DISTRIBUTIONS
FOR
CHARITABLE
PUR-
POSES.— 
‘‘(A) IN GENERAL.—No amount shall be 
includible in gross income by reason of a quali-
fied charitable distribution. 
‘‘(B) LIMITATIONS.— 
‘‘(i) IN
GENERAL.—The aggregate 
amount excluded from gross income by 
subparagraph (A) for a taxable year shall 
not exceed $400,000. 
‘‘(ii) ORGANIZATION AND ENTITY SPE-
CIFIC LIMITATIONS.—The amount excluded 
from gross income by subparagraph (A) 
for a taxable year shall not exceed— 
‘‘(I) $100,000, in the case of any 
distribution described in subparagraph 
(C)(i)(I), and 
‘‘(II) $400,000, in the case of 
any distribution described in subpara-
graph (C)(i)(II). 
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‘‘(C) QUALIFIED
CHARITABLE
DISTRIBU-
TION.—For purposes of this paragraph, the 
term ‘qualified charitable distribution’ means 
any distribution from an individual retirement 
account— 
‘‘(i) which is made directly by the 
trustee— 
‘‘(I) to a specified charitable or-
ganization, or 
‘‘(II) to a split-interest entity, 
and 
‘‘(ii) which is made on or after the 
date that the individual for whose benefit 
the account is maintained has attained— 
‘‘(I) in the case of any distribu-
tion described in clause (i)(I), age 
701⁄2, and 
‘‘(II) in the case of any distribu-
tion described in clause (i)(II), age 
65. 
‘‘(D) SPECIAL RULES RELATING TO DIS-
TRIBUTIONS.—For purposes of this para-
graph— 
‘‘(i) DISTRIBUTION MUST BE OTHER-
WISE
INCLUDIBLE.—A distribution from 
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an individual retirement account shall be 
treated as a qualified charitable distribu-
tion only to the extent that the distribution 
would be includible in gross income with-
out regard to subparagraph (A). 
‘‘(ii) LIMITATION ON INCOME INTER-
ESTS.—A distribution from an individual 
retirement account to a split-interest entity 
may only be treated as a qualified chari-
table distribution if— 
‘‘(I) no person holds an income 
interest in the split-interest entity 
other than the individual for whose 
benefit such account is maintained, 
the spouse of such individual, or both, 
and 
‘‘(II) the income interest in the 
split-interest entity is nonassignable. 
‘‘(iii) CONTRIBUTIONS MUST BE OTH-
ERWISE
DEDUCTIBLE.—A 
distribution 
from an individual retirement account to a 
specified charitable organization may be 
treated as a qualified charitable distribu-
tion only if— 
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‘‘(I) in the case of a distribution 
to a charitable remainder annuity 
trust 
or 
a 
charitable 
remainder 
unitrust, a deduction for the entire 
value of the remainder interest in the 
distribution for the benefit of a speci-
fied charitable organization would be 
allowable under section 170 (deter-
mined without regard to subsection 
(b) thereof and this paragraph), and 
‘‘(II) in the case of a charitable 
gift annuity, a deduction in an 
amount equal to the amount of the 
distribution reduced by the value of 
the annuity described in section 
501(m)(5)(B) 
would 
be 
allowable 
under section 170 (determined with-
out regard to subsection (b) thereof 
and this paragraph). 
‘‘(E) SPECIFIED
CHARITABLE
ORGANIZA-
TION
DEFINED.—For purposes of this para-
graph, the term ‘specified charitable organiza-
tion’ means an organization described in section 
170(b)(1)(A) (other than any organization de-
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scribed in section 509(a)(3) or any fund or ac-
count described in section 4966(d)(2)). 
‘‘(F) SPLIT-INTEREST ENTITY DEFINED.— 
For purposes of this paragraph, the term ‘split- 
interest entity’ means— 
‘‘(i) a charitable remainder annuity 
trust (as defined in section 664(d)(1)), but 
only if such trust is funded exclusively by 
a qualified charitable distribution, 
‘‘(ii) a charitable remainder unitrust 
(as defined in section 664(d)(2)), but only 
if such unitrust is funded exclusively by 
one or more qualified charitable distribu-
tions, or 
‘‘(iii) a charitable gift annuity (as de-
fined in section 501(m)(5)), but only if 
such annuity is funded exclusively by a 
qualified charitable distribution and com-
mences fixed payments of 5 percent or 
greater not later than one year from date 
of funding. 
‘‘(G) SPECIAL RULES.— 
‘‘(i) 
CHARITABLE
REMAINDER 
TRUSTS.—Notwithstanding section 664(b), 
distributions made from a trust described 
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in clause (i) or (ii) of subparagraph (F) 
shall be treated as ordinary income in the 
hands of the beneficiary to whom is paid 
the 
annuity 
described 
in 
section 
664(d)(1)(A) or the payment described in 
section 664(d)(2)(A). 
‘‘(ii) CHARITABLE GIFT ANNUITIES.— 
Qualified charitable distributions made for 
a charitable gift annuity shall not be treat-
ed as an investment in the contract for 
purposes of section 72(c). 
‘‘(iii) APPLICATION OF SECTION 72.— 
Notwithstanding section 72, in determining 
the extent to which a distribution is a 
qualified charitable distribution, the entire 
amount of the distribution shall be treated 
as includible in gross income without re-
gard to subparagraph (A) to the extent 
that such amount does not exceed the ag-
gregate amount which would have been so 
includible if all amounts in all individual 
retirement plans of the individual were dis-
tributed during the taxable year and all 
such plans were treated as 1 contract for 
purposes of determining under section 72 
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the aggregate amount which would have 
been so includible. Proper adjustments 
shall be made in applying section 72 to 
other distributions in such taxable year 
and subsequent taxable years. 
‘‘(iv) 
DETERMINING
DEDUCTION 
UNDER SECTION 170.—Qualified charitable 
distributions shall not be taken into ac-
count in determining the deduction under 
section 170. 
‘‘(v) REQUIRED
MINIMUM
DISTRIBU-
TIONS.—The entire amount of a qualified 
charitable distribution shall be taken into 
account for purposes of section 401(a)(9). 
‘‘(H) TERMINATION
WITH
RESPECT
TO 
SPLIT-ENTITIES.—Subparagraph (A) shall not 
apply to a distribution to a split-interest entity 
after December 31, 2020.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made in taxable 
years ending after the date of the enactment of this Act. 
Æ 
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