Legislation Would Create 401(k)-Like Charitable Giving Accounts

September 13, 2006 – A bill introduced by Senator Johnny Isakson (R-Ga.), S. 3881, is intended to stimulate saving for and giving to charitable organizations. The bill would create new “personal philanthropy accounts” that would allow both taxpayer and employer contributions, would offer tax deferral of contributions and earnings, and would have an annual contribution limit matching the IRC Sec. 402(g) limit, which is $15,000 for 2006. Trustees for such accounts would include banks, credit unions, and other organizations defined in IRC Sec. 408(n). The bill is co-sponsored by Sen. Frank Lautenberg (D-N.J.) and has been referred to the Senate Finance Committee.