A little discussed provision of the Pension Protection Act of 2006, which President Bush signed into law this past August, has investment management firms scrambling to understand its full ramifications.

The provision allows for contributions of up to $100,000 annually to be donated to a charity, or divvied up between charities, directly from IRA accounts of individuals who are at least 70-1/2 years of age-but only applies to calendar years 2006 and 2007. Unless extended by Congress, this philanthropic feature will sunset at year-end 2007.

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