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Making a Charitable Donation with a 403(b) RMD

Q. How do you make a charitable donation with your required minimum distribution (RMD) from a 403b?

A. In order for the best tax result, if possible the participant in the 403(b) should rollover over to an IRA before their required beginning date. A qualified charitable distribution (QCD) can only be made from an IRA. This is limited to $100,000 per year and is treated as a nontaxable distribution and given directly to the charity. It is also treated as their RMD for the year.

Under a 403(b) or a QP, the participant takes their RMD pays taxes on the taxable portion, gives a portion or all to a charity and then if they itemize can take a deduction for the charitable donation.