S. 4511: 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.

This bill proposes amendments to the Internal Revenue Code of 1986 to allow certain charitable distributions from employer-sponsored retirement plans to be excluded from gross income for tax purposes. Here’s a summary of the key points:

Charitable Distributions Exclusion

The bill specifies that:

• Individuals can exclude from their gross income any qualified charitable distributions made directly from their employer-sponsored retirement plans, provided certain conditions are met.
• A "qualified charitable distribution" is defined as a distribution made directly by the retirement plan to a qualified charitable organization after the individual reaches age 70½.

Applicable Amount

The amount that can be excluded from gross income is determined by an "applicable amount," which is calculated as follows:

• This applicable amount is the dollar limit set under tax code regulations for charitable contributions, reduced by any other tax-free distributions an individual has taken in the taxable year.

Special Rules for Different Plans

The amendments will apply to different types of retirement plans, including:

• Section 403(b) Plans: The same rules regarding charitable distributions will apply to annuity contracts.
• Section 457(b) Plans: The rules will also apply to eligible deferred compensation plans established by employers.

Effective Date

The changes will take effect for distributions made in taxable years starting after the enactment of this bill.

Relevant Companies

None found.