Lawmakers Introduce Charity Parity Act to Open 401(k), 403(b) Giving
Updated
Updated · Quiver Quantitative · May 14
Lawmakers Introduce Charity Parity Act to Open 401(k), 403(b) Giving
3 articles · Updated · Quiver Quantitative · May 14
Bipartisan lawmakers in the House and Senate introduced the Charity Parity Act to let taxpayers make qualified charitable distributions directly from employer retirement plans, not just IRAs.
401(k) and 403(b) savers now face extra steps because direct charitable transfers are limited to IRAs; the bill would remove that barrier and simplify donations.
Mike Kelly, Don Beyer, Kevin Cramer and Chris Coons said the change would give retirement savers more flexibility while helping nonprofits that depend on charitable contributions.
A range of charities and nonprofit groups backs the proposal, arguing easier access to retirement-plan giving could lift donations to community services and other causes.
Could a simple tweak to 401(k) rules unleash a new wave of funding for charities nationwide?
Why were 401(k)s excluded from this powerful tax break for charitable giving for so long?