Time now for Eye on Your Money with Financial Advisor Bryce Matteson of the local Oppenheimer & Co. Inc. office. It's always nice to help someone and today we're doing just that with a follow-up on something we talked about during the holidays in December.
The information comes from new federal legislation called the Pension Protection Act of 2006. Believe it or not, some people have enough money and don't want any more - even if it's their own.
The Pension Protection Act may allow them to give money away tax-free and help their favorite charity at the same time. Here's how it works. Any money we put into an IRA is called a contribution. Uncle Sam allows us to invest the money tax-deferred -- not tax free -- until we start taking the money out. Taking money out is called a distribution and taxes are due on the amount taken.