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Asked 12/1/2008
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Can I make a "tax free" distribution from a 401k to a charitable institution ? I'm required to take a RMD from my 401k. Can I direct the 401k trustee to distribute the RMD tax free to a charity. |
Answer 1/1 - Submitted 12/8/2011
Qualified Charitable Distributions -- using the RMD to donate to charity -- is only available with IRAs, not 401(k)s.
The QCD from IRAs (not SEP or SIMPLE IRAs though) is available through the end of 2011. If you're thinking of doing this, hurry and contact the IRA trustee. Some of them require up to a month to process your request, so you might be too late.
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