The pension reform bill that President Bush just signed into law will allow those age 70-1/2 or older to donate up to $100,000 a year from their IRAs tax free to charity, USA Today reports. But the window of opportunity to do so applies only to 2006 and 2007, and the donations must be made directly to the charity.

While individuals cannot claim the donations as a deduction, the withdrawals aren't treated as part of their taxable income; withdrawals from IRAs are otherwise treated as taxable income. In addition, the withdrawals count as part of the required minimum distributions for the year.

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