Senators Coons, Cramer Introduce Bipartisan Bill Targeting Retirement Donation Barriers

U.S. Senators Chris Coons and Kevin Cramer (N.D.) have introduced the Charity Parity Act, a bipartisan bill that would allow taxpayers to make direct charitable donations from employer-sponsored retirement plans such as 401(k)s and 403(b)s. Currently, those tax-free qualified charitable distributions are only available through IRAs, requiring additional steps and fees for many donors. Supporters say the proposal would simplify charitable giving, reduce administrative burdens, and make it easier for retirement savers to support nonprofits directly from their retirement accounts.

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Companion legislation was introduced in the House by Congressmen Don Beyer (D-Va.) and Mike Kelly (R-Pa.). Original cosponsors of the bill include Senators Mark Warner (D-Va.) and Roger Marshall (R-Kan.), both of whom serve on the Senate Finance Committee. Text of the Charity Parity Act is available here.