Sec. 310. One-time election for qualified charitable distribution to split-interest entity; increase in qualified charitable distribution limitation
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Section 408(d)(8)(A) of the Internal Revenue Code of 1986 is amended by striking $100,000 and inserting $130,000 . Section 408(d)(8) of such Code is amended by adding at the end the following new subparagraph: A taxpayer may for a taxable year elect under this subparagraph to treat as meeting the requirement of subparagraph (B)(i) any distribution from an individual retirement account which is made directly by the trustee to a split-interest entity, but only if— an election is not in effect under this subparagraph for a preceding taxable year, and such distribution meets the requirements of clauses
(iii)and (iv). For purposes of this subparagraph, the term split-interest entity means— a charitable remainder annuity trust (as defined in section 664(d)(1)), but only if such trust is funded exclusively by qualified charitable distributions, a charitable remainder unitrust (as defined in section 664(d)(2)), but only if such unitrust is funded exclusively by qualified charitable distributions, or a charitable gift annuity (as defined in section 501(m)(5)), but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of 5 percent or greater not later than 1 year from the date of funding. A distribution meets the requirement of this clause only if— in the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust, a deduction for the entire value of the remainder interest in the distribution for the benefit of a specified charitable organization would be allowable under section 170 (determined without regard to subsection
(b)thereof and this paragraph), and in the case of a charitable gift annuity, a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section 501(m)(5)(B) would be allowable under section 170 (determined without regard to subsection
(b)thereof and this paragraph). A distribution meets the requirements of this clause only if— no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained, the spouse of such individual, or both, and the income interest in the split-interest entity is nonassignable. Notwithstanding section 664(b), distributions made from a trust described in subclause
(I)or
(II)of clause
(ii)shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section 664(d)(1)(A) or the payment described in section 664(d)(2)(A) is paid. Qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment in the contract for purposes of section 72(c). . The amendment made by this section shall apply to distributions made in taxable years ending after the date of the enactment of this Act.