One under-advertised bit that slipped into the Pension Protection Act of
2006 is this; Any or all of an IRA RMD (required minimum distribution) may be donated directly to a charity, and it will not count as income, yet still count as a completed RMD. Why is this good? There are people who are in a 'standard deduction' scenario where they do not take donations as itemized deductions. So for one person whose money I manage, this will let her make her $2000 intended contribution and avoid the tax on that portion of her RMD. A savings of $300. (In fact, I will have her convert that much more to a Roth, to top off the
15% bracket. So in the end, she'll be able to convert the $2000 for 'free' as compared to this law not being in place). This is done as a direct 'rollover' to the charity.
For some, the dollar amount/tax bracket may be higher, this can be quite a break for your more generous, wealthier, clients. This provision expires 12/31/2007.
JOE