Tax Savings Opportunity

Pension Protection Act of 2006

The Pension Protection Act of 2006 has created an exciting opportunity that could result in millions of dollars being donated to charities from IRAs without having the amount of the gift included in the donor’s gross income.

This may help you if:

• You make charitable gifts but do not itemize on your tax return
• You have to take distributions from your IRA but don’t need some or all of the income
• Your charitable gifts now or in recent years is equivalent to 50 percent of your adjusted gross income

To qualify:

• Donors must be 70.5 years old or older at the time of their contribution
• Distribution must be made outright and directly to the charity* 
• The gift maximum per donor is $100,000 per year in 2006 and 2007

Additionally, distributions made to the University of Massachusetts Lowell will apply toward satisfying your minimum distribution requirement.

*Transfers to donor-advised funds, supporting organizations, and charitable remainder trusts and for charitable gift annuities do not qualify.

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