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S4511119th CongressWALLET

A bill 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.

Sponsored By: Senator Cramer, Kevin [R-ND]

Introduced

Summary

Lets older savers exclude certain direct charitable transfers from employer retirement plans from taxable income. This bill would extend the tax-favored treatment for qualified charitable distributions (QCDs) to more employer-sponsored plans while keeping an age 70½ threshold, a cap tied to existing IRA rules, and a direct plan-to-charity transfer requirement.

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  • Retirees and older savers: People age 70½ and older could exclude from gross income direct charitable gifts from more plans, including SEP and SIMPLE arrangements and 403(b) and 457(b) employer plans.
  • Charities and nonprofits: Qualified charities could receive more tax-preferred gifts directly from employer plans, which may increase the flow of plan-to-charity donations.
  • Employers and plan administrators: Plan sponsors would need to support direct transfers and follow rules aligned with current IRA distribution limits and the bill's "applicable amount" cap, and the change would apply to distributions in tax years beginning after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Charitable rollovers from employer plans for seniors

If enacted, people age 70½ or older would be able to exclude from their taxable income charitable distributions sent directly from certain employer retirement plans. The exclusion would apply only to the taxable part of the transfer and would be limited each year by the existing qualified charitable distribution dollar limit under current law. The rule would extend beyond IRAs to SEP and SIMPLE plans, 403(b) annuity contracts, and eligible 457(b) plans. Transfers would have to go straight from the plan to a qualifying public charity; donor-advised funds and certain supporting organizations would be excluded. These changes would apply to distributions made in taxable years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Cramer, Kevin [R-ND]

ND • R

Cosponsors

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 5/13/2026

  • Sen. Marshall, Roger [R-KS]

    KS • R

    Sponsored 5/13/2026

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 5/13/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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