Bipartisan Legislation Introduced: Charity Parity Act
On Wednesday, May 13, 2026, Congressmen Don Beyer (D-VA) and Mike Kelly (R-PA) along with Senators Kevin Cramer (R-ND) and Chris Coons (D-DE) introduced the Charity Parity Act, permitting taxpayers to make direct qualified charitable distributions (“QCDs”) from their employer-sponsored retirement plans. The announcement on Congressman Beyer’s webpage explained the need for the legislation:
Currently, retirement savers can exclude up to $111,000 in QCDs from their gross income annually. However, QCDs must be made directly from an individual’s IRA to eligible charitable organizations. Distributions from employer-sponsored plans, such as 401(k)s and 403(b)s, are not eligible for QCD treatment. Individuals who wish to make charitable contributions from employer-sponsored retirement plans are required to first roll over the funds to an IRA, creating unnecessary costs and additional steps for retirement savers.
The Charity Parity Act would allow direct QCDs from employer-sponsored retirement plans. By doing so, it would ensure retirement savers are treated equitably regardless of the type of retirement plan holding their assets. Eliminating rollover-related fees, financial burdens, and the administrative complexity for savers who would otherwise need to transfer assets from employer plans to IRAs before making a charitable contribution would make it easier to give to charity and in higher amounts.
Senators Mark Warner (D-VA) and Roger Marshall (R-KS), both of whom serve on the Senate Finance Committee, are original cosponsors of the bill include. The proposed legislation enjoys the support of a broad coalition of charities and other nonprofit organizations.