Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 6:12:46 PM

Can I have charitable donations made directly from my pre-tax retirement accountsl (457B, 403(B), etc.) accounts and have it reduce my income for tax purposes?

All my retirement accounts are pre-tax.  I am required to take RMDs this year (over 70 1/2).  I know charitable donations made directly from IRA accounts can reduce your stated income for tax purposes, but not sure if that includes pre-tax accounts?

0 2 5981
2 Replies
Level 7
Jun 4, 2019 6:12:47 PM

No. A qualified charitable distribution (QCD) can only be made from IRAs. Money in employer-sponsored retirement plans such as 401(k)s and 403(b)s is not eligible for QCDs.

Per IRA FAQs - Distributions (Withdrawals), "Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity. See Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs)) for additional information."

Level 15
Jun 4, 2019 6:12:49 PM

You can have the 457(b) plan or 403(b) plan make the payment directly to the charity, but it won't be a QCD.  It will be no different that the plan making the distribution to you and then you writing a check to the charity.  You'll be able to claim a charitable contribution deduction on Schedule A, but you cannot exclude the distribution from income the way you could with a QCD from an IRA.