I 
108TH CONGRESS 
1ST SESSION H. R. 2230
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 HOUSE OF REPRESENTATIVES 
MAY 22, 2003
Mr. CRANE 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 waive 
the income inclusion on a distribution from an individual 
retirement account to the extent that the distribution 
is contributed 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 ‘‘IRA Charitable Roll-
over Incentive Act’’.
SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE-
TIREMENT 
ACCOUNTS 
FOR 
CHARITABLE 
PURPOSES. 
(a) IN GENERAL.—Subsection (d) of section 408 of 
the Internal Revenue Code of 1986 (relating to individual 
retirement accounts) is amended by adding at the end the 
following new paragraph: 
‘‘(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 from an individual 
retirement account to an organization described 
in section 170(c). 
‘‘(B) SPECIAL RULES RELATING TO CHARI-
TABLE
REMAINDER
TRUSTS, POOLED
INCOME 
FUNDS, AND CHARITABLE GIFT ANNUITIES.—
‘‘(i) IN GENERAL.—No amount shall 
be includible in gross income by reason of 
a qualified charitable distribution from an 
individual retirement account—
‘‘(I) to a charitable remainder 
annuity trust or a charitable remain-
der unitrust (as such terms are de-
fined in section 664(d)),
‘‘(II) to a pooled income fund (as 
defined in section 642(c)(5)), or 
‘‘(III) for the issuance of a chari-
table gift annuity (as defined in sec-
tion 501(m)(5)). 
The preceding sentence shall apply 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: the individual 
for whose benefit such account is main-
tained, the spouse of such individual, or 
any organization described in section 
170(c). 
‘‘(ii) DETERMINATION OF INCLUSION 
OF
AMOUNTS
DISTRIBUTED.—In deter-
mining the amount includible in the gross 
income of any person by reason of a pay-
ment or distribution from a trust referred 
to in clause (i)(I) or a charitable gift annu-
ity (as so defined), the portion of any 
qualified charitable distribution to such 
trust or for such annuity which would (but 
for this subparagraph) have been includible 
in gross income—
‘‘(I) shall be treated as income 
described in section 664(b)(1), and 
‘‘(II) shall not be treated as an 
investment in the contract. 
‘‘(iii) NO INCLUSION FOR DISTRIBU-
TION
TO
POOLED
INCOME
FUND.—No 
amount shall be includible in the gross in-
come of a pooled income fund (as so de-
fined) by reason of a qualified charitable 
distribution to such fund. 
‘‘(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 on or after the 
date that the individual for whose benefit 
the account is maintained has attained age 
591⁄2, and 
‘‘(ii) which is made directly from the 
account to—
‘‘(I) an organization described in 
section 170(c), or 
‘‘(II) a trust, fund, or annuity re-
ferred to in subparagraph (B).
‘‘(D) 
DENIAL
OF
DEDUCTION.—The 
amount allowable as a deduction under section 
170 to the taxpayer for the taxable year shall 
be reduced (but not below zero) by the sum of 
the amounts of the qualified charitable distribu-
tions during such year which would be includ-
ible in the gross income of the taxpayer for 
such year but for this paragraph.’’
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
the date of the enactment of this Act.
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