How has the tax law changed?
The Pension Protection Act of 2006 permits individuals to transfer up to $100,000 from individual retirement accounts directly to a qualifying charity without recognizing the assets transferred as income for federal tax purposes. In tax years beginning after December 31, 2005, a donor who has reached age 70 is now allowed to exclude from his or her income tax calculations certain IRA withdrawals. In most circumstances, these charitable contributions are not tax deductible unless the retirement accounts were funded with after-tax dollars. This provision is time-limited. It will not apply to any distribution made in taxable years beginning after December 31, 2007. Now it is easier than ever for more people to enjoy the experience of making the tax-free gift of a lifetime using their excess retirement assets. What if a donor contributes more than $100,000 from an IRA? Because the amount that the donor is able to exclude from income is limited to $100,000 under the act, the remaining amoun
