Gift to University

[§#$%!]

A client wants to gift $100,000 to his former university from a qualified retirement plan.

If this is possible, what type of distribution is this from a qualified retirement plan? …rollover or cash?

Cash?

Distribute $125,000 ($25,000 payable to the fed for w/h and $100,000 payable to the participant) and have the participant endorse the check to the university. Or, have the participant deposit the check and have him issue a personal check to the university.

Can this be a rollover?

Thank you.

[JanetM]

I don't believe you can gift a qualified plan balance. I think that to do it the person would have to take the distribution and then give it to the charity.

I think they are confusing the new IRA gift to charity that are part of PPA.

[jevd]

If over 70 1/2 and can take a distribution, Direct Roll to IRA then gift to charity under PPA rules.