A:

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)

Hot Definitions
  1. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  2. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  3. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  4. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  5. The Bernie Madoff Story

    Bernie Madoff ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
  6. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding, ...
Trading Center