Community News

Pension Protection Act Signed into Law

- Oct 11 2006

This past summer The Pension Protection Act was signed into law. The provision provides an exclusion from gross income for certain distributions of up to $100,000 from a traditional individual retirement account (IRA) or a Roth IRA, which would otherwise be included in income. The provision is effective for two years through 2007.

For 2006 and 2007, those who are at least 70 ½ years of age can make a tax-free charitable gift of up to $100,000 per year from your IRA. Distribution must be made directly from the trustee of an IRA to the charity. Donors cannot take the distribution themselves and subsequently write a check to the charity.

Those over 70 who are taking a required withdrawal from an IRA and are also contributing funds to charity should strongly consider taking advantage of tax-free gifts from their IRAs this year and next.

Please consider this option as you plan your end-of-year charitable gift to the Parkinson's Disease Foundation. For more information on giving to PDF, visit www.pdf.org/en/ways_give.

Source Date: Oct 11 2006