text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Public Good IRA Rollover Act of 
  2009''.
  
  SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS FOR 
                CHARITABLE PURPOSES.
  
      (a) In General.--Paragraph (8) of section 408(d) of the Internal 
  Revenue Code of 1986 (relating to tax treatment of distributions) is 
  amended to read as follows:
              ``(8) Distributions for charitable purposes.--
                      ``(A) In general.--No amount shall be includible in 
                  gross income by reason of a qualified charitable 
                  distribution.
                      ``(B) Qualified charitable distribution.--For 
                  purposes of this paragraph, the term `qualified 
                  charitable distribution' means any distribution from an 
                  individual retirement account--
                              ``(i) which is made directly by the 
                          trustee--
                                      ``(I) to an organization described 
                                  in section 170(c), or
                                      ``(II) to a split-interest entity, 
                                  and
                              ``(ii) which is made on or after the date 
                          that the individual for whose benefit the 
                          account is maintained has attained--
                                      ``(I) in the case of any 
                                  distribution described in clause 
                                  (i)(I), age 70\1/2\, and
                                      ``(II) in the case of any 
                                  distribution described in clause 
                                  (i)(II), age 59\1/2\.
                  A distribution shall be treated as a qualified 
                  charitable distribution only to the extent that the 
                  distribution would be includible in gross income 
                  without regard to subparagraph (A) and, in the case of 
                  a distribution to a split-interest entity, only if no 
                  person holds an income interest in the amounts in the 
                  split-interest entity attributable to such distribution 
                  other than one or more of the following: the individual 
                  for whose benefit such account is maintained, the 
                  spouse of such individual, or any organization 
                  described in section 170(c).
                      ``(C) Contributions must be otherwise deductible.--
                  For purposes of this paragraph--
                              ``(i) Direct contributions.--A distribution 
                          to an organization described in section 170(c) 
                          shall be treated as a qualified charitable 
                          distribution only if a deduction for the entire 
                          distribution would be allowable under section 
                          170 (determined without regard to subsection 
                          (b) thereof and this paragraph).
                              ``(ii) Split-interest gifts.--A 
                          distribution to a split-interest entity shall 
                          be treated as a qualified charitable 
                          distribution only if a deduction for the entire 
                          value of the interest in the distribution for 
                          the use of an organization described in section 
                          170(c) would be allowable under section 170 
                          (determined without regard to subsection (b) 
                          thereof and this paragraph).
                      ``(D) Application of section 72.--Notwithstanding 
                  section 72, in determining the extent to which a 
                  distribution is a qualified charitable distribution, 
                  the entire amount of the distribution shall be treated 
                  as includible in gross income without regard to 
                  subparagraph (A) to the extent that such amount does 
                  not exceed the aggregate amount which would have been 
                  so includible if all amounts in all individual 
                  retirement plans of the individual were distributed 
                  during the taxable year and all such plans were treated 
                  as 1 contract for purposes of determining under section 
                  72 the aggregate amount which would have been so 
                  includible. Proper adjustments shall be made in 
                  applying section 72 to other distributions in such 
                  taxable year and subsequent taxable years.
                      ``(E) Special rules for split-interest entities.--
                              ``(i) Charitable remainder trusts.--
                          Notwithstanding section 664(b), distributions 
                          made from a trust described in subparagraph 
                          (G)(i) shall be treated as ordinary income in 
                          the hands of the beneficiary to whom is paid 
                          the annuity described in section 664(d)(1)(A) 
                          or the payment described in section 
                          664(d)(2)(A).
                              ``(ii) Pooled income funds.--No amount 
                          shall be includible in the gross income of a 
                          pooled income fund (as defined in subparagraph 
                          (G)(ii)) by reason of a qualified charitable 
                          distribution to such fund, and all 
                          distributions from the fund which are 
                          attributable to qualified charitable 
                          distributions shall be treated as ordinary 
                          income to the beneficiary.
                              ``(iii) Charitable gift annuities.--
                          Qualified charitable distributions made for a 
                          charitable gift annuity shall not be treated as 
                          an investment in the contract.
                      ``(F) Denial of deduction.--Qualified charitable 
                  distributions shall not be taken into account in 
                  determining the deduction under section 170.
                      ``(G) Split-interest entity defined.--For purposes 
                  of this paragraph, the term `split-interest entity' 
                  means--
                              ``(i) a charitable remainder annuity trust 
                          or a charitable remainder unitrust (as such 
                          terms are defined in section 664(d)) which must 
                          be funded exclusively by qualified charitable 
                          distributions,
                              ``(ii) a pooled income fund (as defined in 
                          section 642(c)(5)), but only if the fund 
                          accounts separately for amounts attributable to 
                          qualified charitable distributions, and
                              ``(iii) a charitable gift annuity (as 
                          defined in section 501(m)(5)).''.
      (b) Effective Date.--The amendment made by this section shall apply 
  to distributions made in taxable years beginning after December 31, 
  2008.
target: Public Good IRA Rollover Act of 2009 - Amends the Internal Revenue Code to revise the tax exclusion of distributions from individual retirement accounts (IRAs) for charitable purposes to: (1) make such exclusion permanent; (2) eliminate the $100,000 cap on such exclusion; (3) permit tax-free distributions from IRAs to a split-interest entity (i.e., a charitable remainder annuity or unitrust, a pooled income fund, and a charitable gift annuity); and (4) allow distributions to a split-interest entity to be made when the account beneficiary attains age 59-1/2 (otherwise, age 70-1/2 for IRA distributions to a charitable organization).
feat_title: A bill to amend the Internal Revenue Code of 1986 to expand tax-free distributions from individual retirement accounts for charitable purposes.