When President Bush signed the $700 billion financial rescue package last week, it included a two-year extension of the Pension Protection Act (a.k.a. IRA Rollover Provision), which expired at the end of 2007.

This provision allows taxpayers to make tax-free contributions from their Individual Retirement Accounts to qualified charitable organizations. However, the following limitations apply:

• The donor must be age 70½ or older.
• The maximum annual IRA rollover is $100,000.
• The contribution must be a direct gift to a charity (no planned gifts).

The provision will apply to gifts made from January 1, 2008 through December 31, 2009.

To learn more about the Pension Protection Act please contact Alesia Hanners at (636) 549-1247 or alesia.hanners@wymancenter.org. It is recommended that you speak with your financial advisor before making any final decisions regarding your IRA.