I
107TH CONGRESS
1ST SESSION
H. R. 774
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
FEBRUARY 28, 2001
Mr. CRANE (for himself, Mr. NEAL of Massachusetts, Mr. PAUL, Mr.
HERGER, Mr. ROGERS of Michigan, Mr. TANCREDO, Mr. SOUDER, Mr.
BRADY of Texas, Mr. STUPAK, Mr. PETERSON of Pennsylvania, and Mr.
WATKINS) introduced the following bill; which was referred to the Com-
mittee 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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