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New Pension Protection Act Eliminates Taxes

on IRA Rollovers Made Directly to Charities

SEPT. 14, 2006 - The new Pension Protection Act will have a positive impact on the tax treatment of donations to 501 (c)(3) charitable organizations from a donor's individual retirement account.

The law's primary change is that in certain circumstances, the amount of the donation is not considered taxable income, thus providing the donor with a major tax benefit.

To qualify, the donor needs to be at least age 70½, and the income exclusion is $100,000 annually. Split-interest gifts, or donations to supporting organizations, donor-advised funds or private foundations do not qualify.