The 2006 Pension Protection Act has brought on some significant changes to the PPA.

1. The new act will now allow a non-spousal rollover of an inherited IRA. For example, lets say Dad dies and names daughter Jane as sole beneficiary of a 401k. She can take it and roll it over into an account for her benefit (even though she is a child and not a spouse). But it must say fathers name, deceased, IRA for the benefit of daughter Jane; it cant just say Jane’s IRA. This adds some flexibility.

2. We have been fighting for the ability to let charitable contribution deductions to be made directly from IRAS. You can now, for 2006-2007, give up to $100,000 from your IRA to a charity and not have to report that distribution in income. But there must follow certain criteria, such as the contribution must meet regular requirements for a charitable contribution deduction, must be at least 70 ½ on the day of the transfer.

3. You can make a direct rollover from a qualified retirement plan to a roth IRA (individual retirement account)