Frequently Asked Question

October 11 2006 | Filed Under ยป ,

What does the Pension Protection Act of 2006 say about charitable contributions?

According to the Pension Protection Act of 2006 (PPA), you can make a distribution from your IRA payable to a charity. A distribution to a charity is not taxable to the IRA owner if the charity satisfies the specifications as described under PPA and the distribution occurs after the IRA owner reaches age 70.5. This amount is limited to $100,000 per year and is available only for 2006 and 2007. The amounts would not be eligible for charitable deductions. It may be worthwhile to consult with a tax professional or retirement plans consultant to ensure that your distribution satisfies the requirements.

For additional information, see Pension Protection Act Of 2006 Becomes Law.

This question was answered by Denise Appleby
(Contact Denise)
by

Denise Appleby

Denise Appleby
Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.


With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
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