If you are thinking about a large charitable gift in the next couple of years and you are over age 70 ½, the recent Pension Protection Act includes provisions allowing a direct rollover from your IRA to a charity.  These rules allow you to directly transfer assets from the IRA to the charity without including the amount of the transfer into income (nor can you claim the charitable deduction).  This new procedure, which is only available in 2006 and 2007, can be especially useful to seniors who no longer itemize deductions but would like to use their IRA to make gifts.

Note: there are many technical provisions relating to these transfers, including the tax status of charities that are eligible to receive these kinds of gifts.  Therefore, before you attempt to make such a gift, check with a knowledgeable attorney or accountant who understands these rules.

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