A new bipartisan bill would allow savers to make charitable donations from their workplace retirement account.
The Charity Parity Act, introduced by Congressmen Don Beyer (D-VA) and Mike Kelly (R-PA), along with Senators Kevin Cramer (R-ND) and Chris Coons (D-DE), would extend direct qualified charitable donations (QCDs) to be made from employer-sponsored defined contribution (DC) retirement plans.
Savers can currently contribute up to $111,000 in in QCDs from their gross annual income, but they must be made directly from an individual retirement account (IRA). Rather than transferring retirement savings to an IRA in order to donate, the Charity Parity Act would allow seniors to contribute directly from their retirement funds. This would also eliminate rollover-related fees and administrative complexity, according to text of the bill.
“The Charity Parity Act would reinforce recent bipartisan successes and encourage additional giving by providing equal treatment for savers wishing to donate to charity regardless of the type of retirement plan holding their assets,” said Rep. Beyer.
Original cosponsors of the bill include Senators Mark Warner (D-VA) and Roger Marshall (R-KS), both of whom serve on the Senate Finance Committee.
The American Retirement Association (ARA) has also backed the bill, supporting the legislation for limiting administrative hurdles on seniors when making charitable donations.
“American retirement savers should not have to jump through unnecessary hoops to support charitable causes simply because their savings are held in a 401(k), 403(b), or other employer-sponsored retirement plan instead of an IRA,” said Brian Graff, CEO of the ARA. “The Charity Parity Act builds on the success of SECURE 2.0 by ensuring retirement savers are treated fairly regardless of where they hold their assets, while making it easier for Americans to give back to the organizations and communities they care about most. By reducing administrative burdens, this legislation can help encourage greater charitable giving while strengthening retirement security.”
The bill is just one of several policy initiatives currently circulating Congress that might possibly be included in a highly anticipated SECURE 3.0 legislative package.
During the 2026 NAPA Summit in April, ARA Senior Director of Federal Legislative Affairs Josh Oppenheimer listed the bill as a possible initiative in building SECURE 3.0. He added that incorporating the legislation would justly allow savers to contribute from other types of savings funds.
“This one ensures retirement savers are treated equitably regardless of the type of retirement plan holding their assets,” he said.