New bipartisan bill would let retirees use their 401(k) to make direct charitable donations
A new bipartisan bill aims to allow retirees to make direct charitable donations from their 401(k) accounts. The proposed legislation seeks to modernize existing rules and eliminate unnecessary rollover steps for charitable transfers. Tax experts believe this change reflects current retirement planning needs and enhances philanthropic opportunities for retirees.
- ▪The annual Qualified Charitable Distribution (QCD) limit for 2026 is set at $111,000 per individual.
- ▪Married couples filing jointly could transfer $111,000 from each of their IRAs in the same year.
- ▪The bill is designed to simplify the process of making charitable donations from retirement accounts.
Opening excerpt (first ~120 words) tap to expand
For 2026, the annual QCD limit is $111,000 per individual. A married couple that files a joint return could transfer $111,000 from each of their IRAs in the same year."I do think the proposed legislation makes sense from both a policy and practical perspective," said tax attorney Richard Fox, founder of the Law Offices of Richard L. Fox in Gladwyne, Pennsylvania. He specializes in philanthropic planning."The proposal is less about creating a major new charitable tax incentive and more about modernizing the rules to reflect current retirement planning realities," Fox said. "The bill essentially would eliminate what many view as an unnecessary rollover step and permit retirees to make direct charitable transfers regardless of the type of retirement account holding the assets."
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Personal Finance.
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