WASHINGTON - The Treasury Department and the IRS issued a notice today providing extensive guidance on several Pension Protection Act rules relating to distributions from tax-qualified retirement plans.

The guidance addresses many questions on PPA provisions, including:

• interest rate assumptions for lump sum distributions
  
  
• hardship distributions from a 401(k) and similar plans
  
  
• early distributions from qualified plans to terminated public safety employees
  
  
• rollovers from qualified plans to IRAs for non-spouse beneficiaries
  
  
• distributions to pay for health insurance for retired public safety officers
  
  
• earlier vesting of certain employer contributions
  
  
• new rules for the notice and consent period for distributions

The notice also clarifies several issues concerning the provision permitting IRA owners age 70 � or older to directly transfer tax-free, up to $100,000 per year to an eligible charity. For example, a check from an IRA made payable to an eligible charity but delivered by the IRA holder still qualifies for tax-free treatment. IRAs held on behalf of beneficiaries, as well as IRAs held by the original owners, are eligible to use this provision. Additionally, the $100,000 annual limit applies separately for each spouse of a married couple. If both spouses have IRAs and are at least age 70 �, the couple can transfer a combined total of $200,000.