- Non Spouse Beneficiaries can rollover in 2007
- Age 701/2 (2006-2007): $100,000 of IRA to charity
- 529 Plans: permanent tax-free withdrawals
- 2010(only): All convert Traditional to Roth IRA
- 401(K): Encourages automatic enrollment
- 401(K): Automatically increases savings rate
- Diversification out of company stock
- Winner: Cash Balance Plans (favors young)
Congress has expanded the Kiddie (child) tax to increase the applicable child’s age from 14 to 17. Accordingly, the first $850 of income is tax free, the next $850 is taxed at the child’s rate and $1,700 at the parent’s tax rate.
THIS WAS A MILESTONE TAX ACT WITH RESPECT TO RETIREMENT PLANS. EACH YEAR CONGRESS MAKES SOME MODIFICATIONS.