IRA Charitable Rollover Facilitation and Enhancement Act of 2025
Summary
What This Bill Does
The IRA Charitable Rollover Facilitation and Enhancement Act amends Internal Revenue Code section 408(d)(8)(B)(i). Qualified charitable distributions from IRAs can already be excluded from income when sent to eligible charities, but the current definition excludes donor-advised funds described in section 4966(d)(2). This bill strikes that exclusion, so post-enactment IRA charitable rollover distributions may be made to donor-advised funds. The practical effect is to make donor-advised funds available as recipients of IRA charitable rollovers, increasing flexibility for older IRA owners and potentially moving more retirement assets into charitable-giving accounts.
Who Benefits and How
IRA owners making charitable rollovers benefit because they gain donor-advised funds as an eligible giving destination. Donor-advised fund sponsors benefit because they can receive qualified charitable distributions from IRAs after enactment. Charitable organizations supported through donor-advised funds benefit indirectly from a larger IRA rollover funding channel. Financial advisers benefit from a simpler planning option for clients using qualified charitable distributions.
Who Bears the Burden and How
The Internal Revenue Service must update qualified charitable distribution guidance and forms for donor-advised fund eligibility. Federal taxpayers bear the revenue effect if more IRA distributions are excluded from income through donor-advised funds. Donor-advised fund administrators must verify and administer IRA rollover contributions under charitable distribution rules. Charities outside donor-advised fund networks may face more competition for IRA rollover gifts.
Key Provisions
- Amends section 408(d)(8)(B)(i) to remove the donor-advised fund restriction.
- Expands qualified charitable distribution destinations to donor-advised funds described in section 4966(d)(2).
- Applies the change to IRA distributions made after enactment.
- Provides a tax-planning route for IRA charitable rollovers through donor-advised fund accounts.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Allows qualified charitable distributions from individual retirement accounts to go to donor-advised funds by repealing the section 408 restriction on those funds.
Key Policy Areas
Tax, Charitable Giving, Retirement
Primary Purpose
Allows qualified charitable distributions from individual retirement accounts to go to donor-advised funds by repealing the section 408 restriction on those funds.
Policy Domains
Resolution provisions
Identified Gains
- IRA owners making charitable rollovers
- Donor-advised fund sponsors
- Charitable organizations supported through donor-advised funds
- Financial advisers
Identified Costs
- Internal Revenue Service
- Federal taxpayers
- Donor-advised fund administrators
- Charities outside donor-advised fund networks
Sponsors
Legislative Progress
In CommitteeMr. Smith of Nebraska (for himself, Mr. Panetta, Mr. Buchanan, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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