Contribution to church from 401K
I am planning
on giving a total of $150,000 from my 401K Retirement account to the building fund of my church. I am planning on giving $50,000 each year for 3 years.
Question: In what way do I give this gift to the church to pay the least amount of taxes
I am 69 years old – birth date 5/26/1942. My annual income is $40,000 + $24,000 I withdraw from my 401K
My 401k is with a major brokerage firm (broker) in my name. The 401k consists of stocks of 62 companies both in the United States and foreign countries. My plan was to transfer $50,000 worth of stock certificates directly from my 401K account to a PNC church account. PNC would then sell the stocks and give the proceeds of the sale to the church.
The reason I wanted to make the contributions this way was to avoid capital gains tax on the contributed stocks.
However, the broker said they could not transfer stock certificates directly from my 401K account to a PNC church account. The broker said they would have to sell the stocks and give the money from the sale either to me or directly to the church.
The broker said if this was NOT a 401K account they would transfer stock certificates directly from my account to a PNC church account.