Tax Free Charitable Giving Gets an Update: What This Means for Retirees and Philanthropy The latest bipartisan bill to emerge from Congress aims to simplify charitable giving for retirees by allowing them to make direct donations from their 401(k) accounts.
Dubbed the Charity Parity Act, this proposed legislation seeks to bring 401(k)s on par with IRAs when it comes to qualified charitable distributions (QCDs).
Currently, QCDs are only available from IRAs directly to qualifying nonprofits. This means retirees must first roll over their 401(k) funds into an IRA before making a QCD.