Tax break for retirees giving to charity from employer plans

What it does

This bill allows people age 70½ and older to exclude from taxable income charitable donations made directly from their employer retirement plans (401(k)s, 403(b)s, 457(b)s, and similar plans) up to a specified annual limit. The donation must go directly from the plan to a qualified charity, and the benefit applies only to the extent the distribution would otherwise be taxable income. This effectively gives older workers a tax break for charitable giving from retirement accounts.

Why we flagged it

The bill's sole operative mechanism is a tax exclusion for charitable distributions from employer retirement plans. It is a straightforward tax incentive aligned with existing charitable-giving policy, not a deregulation, subsidy, or carve-out for a narrow private interest.

What the text implies

• The bill extends an existing charitable-giving tax benefit (available for IRAs under IRC § 408(d)(8)) to employer-sponsored plans, potentially increasing the total charitable deductions available to high-income retirees who have both types of accounts.
• By allowing direct distributions to charity, the bill may reduce the tax burden on retirees who would otherwise withdraw funds, pay tax, and then donate—effectively subsidizing charitable giving by older workers with substantial retirement savings.
• The 'applicable amount' is tied to the IRA charitable-distribution limit, meaning the employer-plan benefit will automatically adjust if Congress changes the IRA limit in the future.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Older workers who donate to charity from retirement accounts receive a tax deduction they would not otherwise have, reducing their tax liability. The benefit is broadly available to any individual age 70½+ with an employer retirement plan, not limited to a narrow group, and aligns with existing charitable-giving incentives in the tax code.

Who stands to gain

• Individual taxpayers age 70½+ with employer retirement plans
• Qualified charitable organizations receiving direct distributions

Named in the bill

Internal Revenue Code § 402, Internal Revenue Code § 408(d)(8), Internal Revenue Code § 403(b), Internal Revenue Code § 457(b), Qualified charities (IRC § 170(b)(1)(A)), Employer-sponsored retirement plans (401(k), 403(b), 457(b), SEP, SIMPLE)

Where it stands

2 cosponsors: 1 Democrats, 1 Republicans.

• May 13, 2026 — Introduced · Congress.gov: “Introduced in House”
• May 13, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

10 lobbying clients named this bill on 10 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $2,043,661 in lobbying spend. A filing names 8 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 91% of bills with at least one filing.

Donald Beyer, the sponsor, reported $660,599 in PAC receipts in the 2026 cycle.

• American Cancer Society Cancer Action Network Inc — $1,240,000 on 1 filing
• American Society of Pension Professionals & Actuaries — $428,151 on 1 filing
• Vanguard Charitable — $130,000 on 1 filing
• National Council of Nonprofits (formerly Known As the National Council of Nonpro — $95,510 on 1 filing
• American Retirement Association — $60,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.