To amend the Internal Revenue Code of 1986 to exclude from gross income charitable distributions from certain employer-sponsored retirement plans, and for other purposes.
- Bill Number
- H.R. 8783
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-13: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-01T16:28:42Z
AI-Generated Summary
Summary of H.R. 8783
Purpose
This legislation amends the Internal Revenue Code of 1986 to allow certain distributions from employer-sponsored retirement plans to be excluded from an individual's gross income when made directly to qualifying charities. It extends existing tax treatment for charitable giving from individual retirement accounts to additional types of retirement plans.
Key Provisions
- Qualified Charitable Distributions: Permits tax-free distributions from qualified employer plans to organizations described in section 170(b)(1)(A) of the Internal Revenue Code (excluding supporting organizations and donor-advised funds), provided the individual has reached age 70½.
- Applicable Amount Limit: Caps the exclusion at the difference between the annual IRA charitable distribution limit and any amounts already excluded under IRA rules.
- Special Rules: Applies similar treatment as IRA rules for basis recovery, plan aggregation, and other mechanics; distributions count only to the extent they would otherwise be taxable.
- Plan Coverage: Extends the rules to SEPs, SIMPLE plans, 403(b) annuity contracts, and certain 457(b) deferred compensation plans.
- Effective Date: Applies to distributions in taxable years beginning after the date of enactment.
Significant Changes to Existing Law
- Removes the prior exclusion of SEPs and SIMPLE plans from IRA charitable distribution rules.
- Adds new subsections to sections 402, 403, and 457 to mirror the charitable distribution framework currently available only under section 408(d)(8) for IRAs.
- Broadens the scope of tax-advantaged charitable giving from retirement savings beyond traditional and Roth IRAs.
Potential Impacts
- On Citizens: Enables individuals with balances in employer-sponsored plans to make direct charitable contributions without incurring income tax, potentially increasing philanthropic activity among older taxpayers.
- On Government Agencies: The Internal Revenue Service would administer expanded reporting and verification requirements for these distributions across additional plan types.
- On International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Individuals aged 70½ or older who participate in qualified employer retirement plans.
- Employers that sponsor 401(k), 403(b), 457(b), SEP, or SIMPLE plans.
- Charitable organizations eligible to receive such distributions.
- The Internal Revenue Service, responsible for tax administration and enforcement.
Notable Legal, Constitutional, or Political Implications
- The bill operates within Congress's authority to modify the Internal Revenue Code and does not raise apparent constitutional concerns related to federal taxing power.
- It aligns tax policy for different retirement plan types, potentially reducing disparities in treatment between IRAs and employer-sponsored plans.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Beyer, Donald S. [D-VA-8]
Cosponsors (1)
Recent Actions
- 2026-05-13: Referred to the House Committee on Ways and Means.
- 2026-05-13: Introduced in House
- 2026-05-13: Introduced in House
Bill Versions
- To amend the Internal Revenue Code of 1986 to exclude from gross income charitable distributions from certain employer-sponsored retirement plans, and for other purposes. — issued 2026-05-13 — PDF (5 pages)