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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ONE-TIME ELECTION FOR QUALIFIED CHARI-
TABLE DISTRIBUTION TO SPLIT-INTEREST 
ENTITY; INCREASE IN QUALIFIED CHARI-
TABLE DISTRIBUTION LIMITATION. 
(a) ONE-TIME ELECTION FOR QUALIFIED CHARI-
TABLE DISTRIBUTION
TO SPLIT-INTEREST ENTITY.— 
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Section 408(d)(8) of such Code is amended by adding at 
the end the following new subparagraph: 
‘‘(F) ONE-TIME ELECTION FOR QUALIFIED 
CHARITABLE DISTRIBUTION TO SPLIT-INTEREST 
ENTITY.— 
‘‘(i) IN
GENERAL.—A taxpayer may 
for a taxable year elect under this subpara-
graph to treat as meeting the requirement 
of subparagraph (B)(i) any distribution 
from an individual retirement account 
which is made directly by the trustee to a 
split-interest entity, but only if— 
‘‘(I) an election is not in effect 
under this subparagraph for a pre-
ceding taxable year, 
‘‘(II) the aggregate amount of 
distributions of the taxpayer with re-
spect to which an election under this 
subparagraph 
does 
not 
exceed 
$50,000, and 
‘‘(III) such distribution meets the 
requirements of clauses (iii) and (iv). 
‘‘(ii) SPLIT-INTEREST
ENTITY.—For 
purposes of this subparagraph, the term 
‘split-interest entity’ means— 
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‘‘(I) a charitable remainder annu-
ity trust (as defined in section 
664(d)(1)), but only if such trust is 
funded exclusively by qualified chari-
table distributions, 
‘‘(II) 
a 
charitable 
remainder 
unitrust 
(as 
defined 
in 
section 
664(d)(2)), but only if such unitrust 
is funded exclusively by qualified char-
itable distributions, or 
‘‘(III) a charitable gift annuity 
(as defined in section 501(m)(5)), but 
only if such annuity is funded exclu-
sively by qualified charitable distribu-
tions and commences fixed payments 
of 5 percent or greater not later than 
1 year from the date of funding. 
‘‘(iii) CONTRIBUTIONS MUST BE OTH-
ERWISE
DEDUCTIBLE.—A 
distribution 
meets the requirement of this clause only 
if— 
‘‘(I) in the case of a distribution 
to a charitable remainder annuity 
trust or a charitable remainder uni-
trust, a deduction for the entire value 
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of the remainder interest in the dis-
tribution for the benefit of a specified 
charitable organization would be al-
lowable under section 170 (determined 
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). 
‘‘(iv) LIMITATION ON INCOME INTER-
ESTS.—A distribution meets the require-
ments of this clause only 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 
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‘‘(II) the income interest in the 
split-interest entity is nonassignable. 
‘‘(v) SPECIAL RULES.— 
‘‘(I) CHARITABLE
REMAINDER 
TRUSTS.—Notwithstanding 
section 
664(b), distributions made from a 
trust described in subclause (I) or (II) 
of clause (ii) shall be treated as ordi-
nary income in the hands of the bene-
ficiary to whom the annuity described 
in section 664(d)(1)(A) or the pay-
ment 
described 
in 
section 
664(d)(2)(A) is paid. 
‘‘(II) CHARITABLE
GIFT
ANNU-
ITIES.—Qualified charitable distribu-
tions made to fund a charitable gift 
annuity shall not be treated as an in-
vestment in the contract for purposes 
of section 72(c).’’. 
(b) INFLATION ADJUSTMENT.—Section 408(d)(8) of 
such Code, as amended by subsection (a), is amended by 
adding at the end the following new subparagraph: 
‘‘(G) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after 2022, each of 
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the dollar amounts in subparagraphs (A) 
and (F) shall be increased by an amount 
equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2021’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
‘‘(ii) 
ROUNDING.—If 
any 
dollar 
amount increased under clause (i) is not a 
multiple of $1,000, such dollar amount 
shall be rounded to the nearest multiple of 
$1,000.’’. 
(c) 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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