Special Needs Trust Improvement Act of 2022
This bill allows a nonprofit charitable organization to be named as the remainder beneficiary of a Special Needs Trust (i.e., a trust that preserves a beneficiary's eligibility for needs-based government benefits).
To amend the Internal Revenue Code of 1986 to modify rules relating to 
             beneficiaries of charitable remainder trusts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Special Needs Trust Improvement Act 
of 2022''.

SEC. 2. TREATMENT OF CHARITABLE REMAINDER BENEFICIARIES IN APPLICABLE 
              MULTI-BENEFICIARY TRUSTS UNDER DEFINED CONTRIBUTION PLAN 
              DISTRIBUTION RULES AFTER DEATH OF EMPLOYEE.

    (a) In General.--Section 401(a)(9)(H)(iv)(II) of the Internal 
Revenue Code of 1986 is amended by striking ``no individual'' and 
inserting ``no beneficiary''.
    (b) Applicable Multi-Beneficiary Trust Definition.--Section 
401(a)(9)(H)(v) of such Code is amended by adding at the end the 
following:
                        ``For purposes of the preceding sentence, in 
                        the case of a trust the terms of which are 
                        described in clause (iv)(II), any beneficiary 
                        that is an organization described in section 
                        408(d)(8)(B)(i) shall be treated as a 
                        designated beneficiary described in subclause 
                        (II).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in section 401 of the Setting Every Community Up 
for Retirement Enhancement Act of 2019.
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Special Needs Trust Improvement Act of 2022
To amend the Internal Revenue Code of 1986 to modify rules relating to beneficiaries of charitable remainder trusts.
Special Needs Trust Improvement Act of 2022
Rep. Schneider, Bradley Scott