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    Dubad's Avatar
    Dubad Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 3, 2006, 09:40 AM
    401k Withdrawal directly to charities
    I read somewhere that you can direct the administrator of your 401K plant to send a withdrawal (I am over 65 ) directly to a recognized charity thereby avoiding the income tax due on the withdrawal.

    If this is true is this allowable before you have to begin taking the mandatory withdrawals?

    Thank You
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Nov 3, 2006, 11:10 AM
    I would assume, that if the funds are going to a 501(c) organization, that the plan admins can waive the withholding. I would double check this with the IRS.

    This would NOT however, waive the 10% penalty for early withdrawal.
    inept homeowner's Avatar
    inept homeowner Posts: 28, Reputation: 1
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    #3

    Nov 6, 2006, 07:29 PM
    I'm pretty sure that it's only for IRAs and you have to be over 70 1/2 -- when you have to start taking RMDs. It's up to 100k/yr.

    If you contribute a lot, you won't be able to deduct it all because of AGI restrictions on charitable contributions. But if it's not very much, you can take it as income and then deduct it off your return.

    Consult your tax advisor.
    inept homeowner's Avatar
    inept homeowner Posts: 28, Reputation: 1
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    #4

    Nov 6, 2006, 07:30 PM
    You could roll it over -- and wait until you're 70 1/2...
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