IRA and Plan Provisions

PPA 2006 was signed into law on August 17, 2006 but there are many different effective dates. Deep in the 900 plus pages of this behemoth tax act are several IRA and plan gems that create retirement planning opportunities for your clients.

Summary of Key Points

  • The Pension Protection Act of 2006 (PPA 2006) was signed into
    law on August 17, 2006
  • Beginning immediately, IRA owners and IRA beneficiaries age 70½ and older can make tax-free IRA distributions of up to
    $100,000 a year to a charity if the funds are transferred directly from the IRA to the charity
    – This provision was extended through 2009, then through 2011,
    and now through 2013, with two special transitional rules for 2012 QCDs
  • As of 2007, non-spouse beneficiaries of company plans can
    make direct transfers of plan funds to inherited IRAs
    -This provision was made mandatory beginning in 2010
  • As of 2008, company plan funds can be converted directly to Roth IRAs
  • Key retirement provisions from the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) 2001 are made permanent