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1 (December 4, 2007)

handle is hein.crs/crsmthabenm0001 and id is 1 raw text is: Order Code RS22766 December 4, 2007 s CRS Report for Congress Qualified Charitable Distributions from Individual Retirement Accounts: A Fact Sheet John J. Topoleski Analyst in Income Security Domestic Social Policy Division Summary A provision of the Pension Protection Act of 2006 allows tax-free distributions from Individual Retirement Accounts (IRAs) for charitable purposes. This fact sheet describes the provision, which expires on December 31, 2007, and lists the bills in the 110h Congress that would extend it. The bills are H.R. 1419, H.R. 3596, H.R. 3970, H.R. 3996, H.R. 4086, S. 819, and S. 2264. This fact sheet will be updated as legislative activity warrants. Distributions from Individual Retirement Accounts (IRAs) mustbe included in gross income in the year the distribution occurs, and income taxes must be paid on the taxable portion of the distribution. Section 1201 of the Pension Protection Act of 2006 (P.L. 109-280) allows individuals to exclude from gross income distributions from Individual Retirement Accounts (IRAs) if they are made to a qualified charity.! This provision for Qualified Charitable Distributions (QCDs) expires on December 31, 2007. Several legislative proposals in the 110th Congress would extend the provision for one year or two years, or would make the provision permanent. The features of the QCD are * Contributions must be from traditional or Roth IRAs. QCDs cannot be made from employer-sponsored IRAs (SEP-IRAs and SIMPLE-IRAs), or from defined contribution retirement plans (for example, 40 1(k) plans or 403(b) plans).2 * Individuals must be older than 70V2 when the QCD is made. See CRS Report RL33703, Summary of the Pension Protection Act of 2006, by Patrick Purcell. 2 A SEP-IRA is a Simplified Employee Pension. These plans were authorized by the Revenue Act of 1978 (P.L. 95-600). A SIMPLE-IRA is a Savings Incentive Match Plan for Employees. These plans were authorized by the Small Business Job Protection Act of 1996 (P.L. 104-188). Congressional Research Service w The Library of Congress Prepared for Members and Committees of Congress

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