I
106TH CONGRESS
1ST SESSION
H. R. 1446
To amend the Internal Revenue Code of 1986 to allow a tax-free distribution
from qualified retirement plan to the extent that the distribution is
contributed for charitable purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 15, 1999
Mr. DUNCAN 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
tax-free distribution from a qualified retirement plan to
the extent that the distribution is contributed for chari-
table purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TAX-FREE DISTRIBUTIONS FROM PROFIT-SHAR-
ING PENSION PLANS FOR CERTAIN CHARI-
TABLE PURPOSES.
(a) IN GENERAL.—Section 401 of the Internal Rev-
enue Code of 1986 (relating to qualified pension, profit-
sharing, and stock bonus plans) is amended by redesig-
nating subsection (o) as subsection (p) and by inserting
after subsection (n) the following new subsection:
‘‘(o) DISTRIBUTIONS FOR CHARITABLE PURPOSES.—
‘‘(1) IN GENERAL.—A trust forming part of a
profit-sharing or pension plan shall not be treated as
failing to constitute a qualified trust under this sec-
tion merely because the stock bonus, profit-sharing
or pension plan of which such trust is a part makes
1 or more qualified charitable distributions.
‘‘(2) EXCLUSION FROM INCOME.—No amount
shall be includible in the gross income of a plan par-
ticipant by reason of a qualified charitable distribu-
tion (irrespective of whether such qualified chari-
table distribution is made with respect to a chari-
table pledge of such plan participant) from a stock
bonus, profit-sharing or pension plan—
‘‘(A) to an organization described in sec-
tion 170(c),
‘‘(B) to a charitable remainder annuity
trust or a charitable remainder unitrust (as
such terms are defined in section 664(d)),
‘‘(C) to a pooled income fund (as defined
in section 642(c)(5)), or
‘‘(D) for the issuance of a charitable gift
annuity (as defined in section 501(m)(5)).
‘‘(3) SPECIAL
RULES
RELATING
TO
CHARI-
TABLE
REMAINDER
TRUSTS, 
POOLED
INCOME
FUNDS, AND CHARITABLE GIFT ANNUITIES.—
‘‘(A) IN
GENERAL.—Paragraph (2) shall
apply to a trust, fund, or annuity referred to in
subparagraph (B), (C), or (D) of paragraph (2)
only if no person holds an income interest in
the amounts in the trust, fund, or annuity at-
tributable to such distribution other than one or
more of the following:
‘‘(i) the individual for whose benefit
amounts in the stock bonus, or profit-shar-
ing pension plan are maintained and from
which such distribution was made,
‘‘(ii) the spouse of such individual, or
‘‘(iii) any organization described in
section 170(c)(2).
‘‘(B) DETERMINATION OF INCLUSION OF
AMOUNTS
DISTRIBUTED.—In determining the
amount includible in the gross income of any
person by reason of a payment or distribution
from a trust referred to in paragraph (2)(B) or
a charitable gift annuity (as so defined), the
portion of any qualified charitable distribution
to such trust or for such annuity which would
(but for this paragraph) have been includible in
gross income—
‘‘(i) shall be treated as income de-
scribed in section 664(b)(1), and
‘‘(ii) shall not be treated as an invest-
ment in the contract.
‘‘(C) NO INCLUSION FOR DISTRIBUTION TO
POOLED INCOME FUND.—No amount shall be
includible in the gross income of a pooled in-
come fund (as so defined) by reason of a quali-
fied charitable distribution to such fund.
‘‘(4) QUALIFIED CHARITABLE DISTRIBUTION.—
For purposes of this subsection, the term ‘qualified
charitable distribution’ means any transfer or dis-
tribution from amounts in a stock bonus, or profit-
sharing pension plan maintained for the benefit of
an individual—
‘‘(A) which is made on or after the date
that such individual has attained age 591⁄2, and
‘‘(B) which is made directly from such
plan to—
‘‘(i) an organization described in sec-
tion 170(c)(2), or
‘‘(ii) a trust, fund, or annuity referred
to in subparagraph (B), (C), or (D) of
paragraph (2).
‘‘(5) DENIAL OF DEDUCTION.—No deduc-
tion under section 170 shall be allowable to a
taxpayer for the taxable year for the qualified
charitable distributions made during such year
with respect to such taxpayer.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to distributions made after the
date of the enactment of this Act.
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