Bill Proposes Charitable Distributions from DC Plans

Senators Kevin Cramer (R-ND) and Chris Coons (D-DE), and Congressmen Don Beyer (D-VA) and Mike Kelly (R-PA), have introduced the bicameral, bi-partisan Charity Parity Act to allow taxpayers to make direct qualified charitable distributions (QCDs) from their employer sponsored retirement plans. Currently, QCDs must be made directly from an individual's IRA to an eligible charitable organization. The limit for 2026 that can be excluded from income for someone who is 70½ or older is $111,000. The bill would allow QCDs directly from qualified employer plans, eliminating the requirement to first rollover assets to an IRA. The legislation has been referred to the Senate Finance Committee and the House Ways and Means Committee for further consideration.