topic Can I give a large gift from my pre-tax 401K to a charitable organization tax free? Should I transfer the funds to an IRA ? Should I gift some of the funds to my wife? in Retirement tax questions

Can I give a large gift from my pre-tax 401K to a charitable organization tax free? Should I transfer the funds to an IRA ? Should I gift some of the funds to my wife?

baxterji — Tue, 04 Jun 2019 21:07:52 GMT

The gift is currently in a pre-tax 401K and will be 250 K in 2019. Both I and my wife are over 59 1/2. We are living on my (age 63) social security so the tax implications are critical. Also our AGI will be really low. We live in Pennsylvania and pay PA income tax. Thanks for your help.

The direct charitable contribution can only be the Requir...

MichaelL1 — Tue, 04 Jun 2019 21:07:53 GMT

The direct charitable contribution can only be the Required Minimum distribution (RMD) which you do not have until age 59 1/2.

You would have to take the money out of the account, which would be taxable income and then make a gift.

Or leave the charity as a beneficiary of the retirement account, or wait until 70 1/2 and do the RMD that way each year.

And, once an individual reaches age 70½, if you want the...

dmertz — Tue, 04 Jun 2019 21:07:55 GMT

And, once an individual reaches age 70½, if you want the contribution excludible from income it must come from an IRA, not from a 401(k). To be able to make Qualified Charitable Distributions in the year the individual reaches age 70½ and beyond, prior to the year that individual reaches age 70½ that individual will want to roll the money from the 401(k) to an IRA.

Re: And, once an individual reaches age 70½, if you want the...

sdevincent9 — Mon, 30 Mar 2020 12:14:36 GMT

I donated to a charity directly from my retirement accounts, how do I exclude the amount from my AGI?