Question

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?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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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?

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E

EdwardK

Employee

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."

D

dmertz

Employee

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.