Advanced Underwriting Consultants

TSA to Charity?

An agent wanted to know if his client can make a direct transfer from 403 b plan to charity during lifetime. I told him no, that the participant must take a 403 b distribution if eligible, and then make a cash gift to charity. The tax result may or may not be a wash, depending on a number of details.

I described the IRA direct gift to charity program–available up to $100,000 for those older than 70 1/2. I also explained how it is possible to make a direct transfer from 403 b plan or IRA to charity at the participant’s death, and any amounts sent that way would be a wash for both income and estate tax purposes.

Linas Sudzius, J.D., CLU, ChFC