Special Needs Trust Improvement Act of 2022

Bill: 117-s-4426
Sponsor: full_name: Sen. Young, Todd [R-IN]
Introduced: 2022-06-16
Policy area: Taxation
Latest action: action_date: 2022-06-16
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2022-06-16
action_desc: Introduced in Senate
text: <p> <strong>Special Needs Trust Improvement Act of 2022 </strong></p> <p>This bill allows a nonprofit charitable organization to be named as the remainder beneficiary of a Special Needs Trust (i.e., a trust that preserves a beneficiary's eligibility for needs-based government benefits).</p>

tv_txt: II 117th CONGRESS 2d Session S. 4426 IN THE SENATE OF THE UNITED STATES June 16, 2022 Mr. Young (for himself and Ms. Hassan ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify rules relating to beneficiaries of charitable remainder trusts.

1. Short title This Act may be cited as the Special Needs Trust Improvement Act of 2022 . 2. Treatment of charitable remainder beneficiaries in applicable multi-beneficiary trusts under defined contribution plan distribution rules after death of employee (a) In general Section 401(a)(9)(H)(iv)(II) of the Internal Revenue Code of 1986 is amended by striking no individual and inserting no beneficiary . (b) Applicable multi-Beneficiary trust definition Section 401(a)(9)(H)(v) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush text: For purposes of the preceding sentence, in the case of a trust the terms of which are described in clause (iv)(II), any beneficiary which is an organization described in section 408(d)(8)(B)(i) shall be treated as a designated beneficiary described in subclause (II). . (c) Effective date The amendments made by this section shall take effect as if included in section 401 of the Setting Every Community Up for Retirement Enhancement Act of 2019.