Gifting money
Hi Terry, love your column read it every week. I wanted to see if you gift money out of your 40 one or 457 do either the person giving or the person receiving have to pay taxes on that money thank you.
Terry Says
YOU make the withdrawal from your account, and YOU pay the taxes. Then you gift it — tax-free to the recipient. The only exception to this is if you gift directly to a registered 50lc3 charity, in which case you are not taxed on the withdrawal. You’ll need your plan custodian to handle that gift directly.
