[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2909 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2909
To amend the Internal Revenue Code of 1986 to allow a one-time election
for a qualified charitable distribution to a split-interest entity and
to inflation adjust the limits for qualified charitable distributions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 30, 2021
Mr. Beyer (for himself and Mr. Kelly of Pennsylvania) 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 one-time election
for a qualified charitable distribution to a split-interest entity and
to inflation adjust the limits for qualified charitable distributions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ONE-TIME ELECTION FOR QUALIFIED CHARITABLE DISTRIBUTION TO
SPLIT-INTEREST ENTITY; INCREASE IN QUALIFIED CHARITABLE
DISTRIBUTION LIMITATION.
(a) One-Time Election for Qualified Charitable Distribution to
Split-Interest Entity.--Section 408(d)(8) of such Code is amended by
adding at the end the following new subparagraph:
``(F) One-time election for qualified charitable
distribution to split-interest entity.--
``(i) In general.--A taxpayer may for a
taxable year elect under this subparagraph to
treat as meeting the requirement of
subparagraph (B)(i) any distribution from an
individual retirement account which is made
directly by the trustee to a split-interest
entity, but only if--
``(I) an election is not in effect
under this subparagraph for a preceding
taxable year,
``(II) the aggregate amount of
distributions of the taxpayer with
respect to which an election under this
subparagraph does not exceed $50,000,
and
``(III) such distribution meets the
requirements of clauses (iii) and (iv).
``(ii) Split-interest entity.--For purposes
of this subparagraph, the term `split-interest
entity' means--
``(I) a charitable remainder
annuity trust (as defined in section
664(d)(1)), but only if such trust is
funded exclusively by qualified
charitable distributions,
``(II) a charitable remainder
unitrust (as defined in section
664(d)(2)), but only if such unitrust
is funded exclusively by qualified
charitable distributions, or
``(III) a charitable gift annuity
(as defined in section 501(m)(5)), but
only if such annuity is funded
exclusively by qualified charitable
distributions and commences fixed
payments of 5 percent or greater not
later than 1 year from the date of
funding.
``(iii) Contributions must be otherwise
deductible.--A distribution meets the
requirement of this clause only if--
``(I) in the case of a distribution
to a charitable remainder annuity trust
or a charitable remainder unitrust, a
deduction for the entire value of the
remainder interest in the distribution
for the benefit of a specified
charitable organization would be
allowable under section 170 (determined
without regard to subsection (b)
thereof and this paragraph), and
``(II) in the case of a charitable
gift annuity, a deduction in an amount
equal to the amount of the distribution
reduced by the value of the annuity
described in section 501(m)(5)(B) would
be allowable under section 170
(determined without regard to
subsection (b) thereof and this
paragraph).
``(iv) Limitation on income interests.--A
distribution meets the requirements of this
clause only if--
``(I) no person holds an income
interest in the split-interest entity
other than the individual for whose
benefit such account is maintained, the
spouse of such individual, or both, and
``(II) the income interest in the
split-interest entity is nonassignable.
``(v) Special rules.--
``(I) Charitable remainder
trusts.--Notwithstanding section
664(b), distributions made from a trust
described in subclause (I) or (II) of
clause (ii) shall be treated as
ordinary income in the hands of the
beneficiary to whom the annuity
described in section 664(d)(1)(A) or
the payment described in section
664(d)(2)(A) is paid.
``(II) Charitable gift annuities.--
Qualified charitable distributions made
to fund a charitable gift annuity shall
not be treated as an investment in the
contract for purposes of section
72(c).''.
(b) Inflation Adjustment.--Section 408(d)(8) of such Code, as
amended by subsection (a), is amended by adding at the end the
following new subparagraph:
``(G) Inflation adjustment.--
``(i) In general.--In the case of any
taxable year beginning after 2022, each of the
dollar amounts in subparagraphs (A) and (F)
shall be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting `calendar year 2021' for
`calendar year 2016' in subparagraph
(A)(ii) thereof.
``(ii) Rounding.--If any dollar amount
increased under clause (i) is not a multiple of
$1,000, such dollar amount shall be rounded to
the nearest multiple of $1,000.''.
(c) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years ending after the date of the
enactment of this Act.
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