Bill would expand 401(k) and 403(b) charitable rollover tax break to match IRA rules
In committeeS. 4511Latest action
Sponsor: Kevin Cramer · Senator · ND
AIDecoded by AI · checked against the recordRead the official text
Official title: 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.
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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People 70½+ could donate directly from workplace retirement accounts to charity, tax-free, up to $105,000 a year.
40-second read · 4 questions answered below
What does this do?
This bill would extend an existing tax break to workplace retirement accounts like 401(k)s, 403(b)s, 457(b)s, SEPs, and SIMPLE plans. Right now, that tax break only covers IRAs. Donations must go directly to a qualifying public nonprofit, and the limit is $105,000 per year as of 2026.
Who does it affect?
People age 70½ or older with money in a workplace retirement plan would be directly affected. Employers and plan administrators would also need to set up a way to send funds directly to charities, which most plans do not currently do.
Why does it matter?
Retirees who kept money in a workplace plan instead of an IRA would gain the same option that IRA holders already have. Donor-advised funds and private foundations would still not qualify, just as they are excluded under the current IRA rule.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedMay 13, 2026
- Senate committeeYou are here · May 13, 2026
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Finance.