,i #aafth ,,congress #ast ,session ,h4 ,r4 #chcb ,,in ,,the ,,house ,,of ,,representatives ,july #ah1 #bjai,mr4 ,beyer 7for himself1 ,mr4 ,kelly of ,pennsylvania1 and ,ms4 ,sewell of ,alabama7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to expand tax-free distributions from individual retirement accounts to include rollovers for charitable life-income plans for charitable purposes4 #a4 ,short title ,this ,act may be cited as the ,legacy ,,ira ,act4 #b4 ,tax-free distributions from individual retirement accounts for charitable purposes 7a7 ,in general ,paragraph 7#h7 of section #djh7;d7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#h7 ,distributions for charitable purposes 7,a7 ,in general ,no amount shall be includible in gross income by reason of a qualified charitable distribution4 7,b7 ,limitations 7i7 ,in general ,the aggregate amount excluded from gross income under subparagraph 7,a7 with respect to all qualified charitable distributions for a taxable year shall not exceed #djj1jjj4 7ii7 ,split-interest entities ,the aggregate amount excluded from gross income under subparagraph 7,a7 for a taxable year with respect to distributions described in subparagraph 7,c77i77,i7 shall not exceed #ajj1jjj4 7,c7 ,qualified charitable distribution ,for purposes of this paragraph1 the term qualified charitable distribution means any distribution from an individual retirement account-- 7i7 which is made directly by the trustee-- 7,i7 to a specified charitable organization1 or 7,,ii7 to a split-interest entity1 and 7ii7 which is made on or after the date on which the individual for whose benefit the account is maintained has attained-- 7,i7 in the case of any distribution described in clause 7i77,i71 age #gj1 and 7,,ii7 in the case of any distribution described in clause 7i77,,ii71 age #fe4 7,d7 ,special rules relating to distributions ,for purposes of this paragraph-- 7i7 ,distribution must be otherwise includible ,a distribution from an individual retirement account shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph 7,a74 7ii7 ,limitation on income interests ,a distribution from an individual retirement account to a split-interest entity shall be treated as a qualified charitable distribution only if-- 7,i7 no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained1 the spouse of such individual1 or both1 and 7,,ii7 the income interest in the split-interest entity is nonassignable4 7iii7 ,contributions must be otherwise deductible ,a distribution from an individual retirement account to a specified charitable organization shall be treated as a qualified charitable distribution only if-- 7,i7 in the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust1 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 #agj 7determined without regard to subsection 7b7 thereof and this paragraph71 and 7,,ii7 in the case of a charitable gift annuity1 a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section #eja7m77#e77;,b7 would be allowable under section #agj 7determined without regard to subsection 7b7 thereof and this paragraph74 7,e7 ,specified charitable organization ,for purposes of this paragraph1 the term specified charitable organization means an organization described in section #agj7;b77#a77;,a7 7other than any organization described in section #eji7;a77#c7 or any fund or account described in section #diff7;d77#b774 7,f7 ,split-interest entity ,for purposes of this paragraph1 the term split-interest entity means-- 7i7 a charitable remainder annuity trust 7as defined in section #ffd7;d77#a771 but only if such trust is funded exclusively by qualified charitable distributions1 7ii7 a charitable remainder unitrust 7as defined in section #ffd7;d77#b771 but only if such unitrust is funded exclusively by qualified charitable distributions1 or 7iii7 a charitable gift annuity 7as defined in section #eja7m77#e771 but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of #e percent or greater not later than #a year from the date of funding4 7,g7 ,special rules 7i7 ,charitable remainder trusts ,notwithstanding section #ffd7;b71 distributions made from a trust described in clause 7i7 or 7ii7 of subparagraph 7,f7 shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section #ffd7;d77#a77;,a7 or the payment described in section #ffd7;d77#b77;,a7 is paid4 7ii7 ,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 #gb7;c74 7iii7 ,application of section #gb ,notwithstanding section #gb1 in determining the extent to which a distribution is a qualified charitable distribution1 the entire amount of the distribution shall be treated as includible in gross income to the extent that such amount does not exceed the aggregate amount which would have been so includible if all amounts in all individual retirement plans of the individual were distributed during the taxable year and all such plans were treated as #a contract for purposes of determining under section #gb the aggregate amount which would have been so includible4 ,proper adjustments shall be made in applying section #gb to other distributions in such taxable year and subsequent taxable years4 7iv7 ,determining deduction under section #agj ,qualified charitable distributions shall not be taken into account in determining the deduction under section #agj4 7v7 ,required minimum distributions ,the entire amount of a qualified charitable distribution shall be taken into account for purposes of section #dja7;a77#i74 7,h7 ,termination with respect to split-interest entities ,subparagraph 7,a7 shall not apply to a distribution to a split-interest entity in taxable years beginning after the date which is #d years after the date of the enactment of the ,legacy ,,ira ,act4 4 7b7 ,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 ,act4