H.R. 4433 (106th): Charitable Contribution Tax Relief Act of 2000

106th Congress, 1999–2000. Text as of May 11, 2000 (Introduced).

Status & Summary | PDF | Source: GPO

HR 4433 IH

106th CONGRESS

2d Session

H. R. 4433

To amend the Internal Revenue Code of 1986 to waive the income inclusion on a distribution from an individual retirement account or a section 401(k) plan to the extent that the distribution is contributed to a charity.

IN THE HOUSE OF REPRESENTATIVES

May 11, 2000

Mr. FRANKS of New Jersey 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 or a section 401(k) plan to the extent that the distribution is contributed to a charity.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Charitable Contribution Tax Relief Act of 2000’.

SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS AND SECTION 401(k) PLANS TO CHARITIES.

    (a) INDIVIDUAL RETIREMENT ACCOUNTS- 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 TO CHARITIES-

        ‘(A) IN GENERAL- No amount shall be includible in gross income by reason of a distribution from an individual retirement account directly to an organization described in section 170(c).

        ‘(B) 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 distributions during such year which would be includible in the gross income of the taxpayer for such year but for this paragraph.’

    (b) SECTION 401(k) PLANS- Subsection (k) of section 401 of such Code is amended by adding at the end the following new paragraph:

      ‘(13) DISTRIBUTIONS TO CHARITIES-

        ‘(A) IN GENERAL- A qualified cash or deferred arrangement shall not fail to be treated as such by reason of permitting distributions directly to an organization described in section 170(c), and no amount shall be includible in gross income by reason of such a distribution.

        ‘(B) 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 distributions during such year which would be includible in the gross income of the taxpayer for such year but for this paragraph.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.