Background

Under current law, Americans older than 70.5 can make donations to qualifying charities directly from an Individual Retirement Account (a personal retirement savings account) without counting the donation amounts as taxable income. Taxpayers cannot make these types of donations directly from an employer-sponsored retirement account, like a 401(K), 403(b), or 457(b) account.

The Charity Parity Act would allow Americans to make charitable donations directly from employer-sponsored retirement accounts without counting the donation amounts as taxable income. The bill would help to promote impactful charitable giving across the country. It would have a remarkably positive effect for church retirement plan participants.