How are retirement plans affected by this change in tax law?
Starting after 2007, the current funding system for single employer-defined benefit plans will be replaced with one that changes the way minimum contributions are calculated. Multi-employer plans will have new rules as well. Many of the changes are very technical in nature they affect things like the way that interest rates are calculated and the minimum amounts of funding but they all have the goal of strengthening the funding so that the pension plans will be more likely to be solvent in the future. What amendments have been made as far as charitable deductions go? The big change for charitable contributions that the charities are excited about has to do with the allowing tax-free IRA distributions to charities. In the past, if you wanted to make a contribution to a charity out of your Individual Retirement Account, you were required to withdraw the funds, pay the taxes on it and then you could use what was left to make a contribution. This provision is only applicable to taxpayers o
