Into the Sunset: Compliance Issues Under the New Tax Act

Opeila, Nancy
November 2001
Journal of Financial Planning;Nov2001, Vol. 14 Issue 11, p64
Academic Journal
The article focuses on the compliance issues of the Economic Growth and Tax Act Reconciliation Act of 2001. The Economic Growth and Tax Relief Reconciliation Act may represent the most sweeping tax package of the past 20 years. In the coming years, investors will be allowed to contribute more to their IRAs and 401(k) plans, receive increased tax credits for children, and take tax-free withdrawals from 529 college savings plans and education IRAs. They also will enjoy tax rate cuts, get relief from the marriage penalty tax and witness a gradual repeal of the estate tax. Most of the provisions are scheduled to take effect next year and will remain in place until the tax cut's "sunset" on December 31, 2010. So, while the Tax Relief Act certainly creates a host of planning opportunities, it also creates some uncertainty about the future. Planners say it's the scope of the changes in the tax law that has prompted them to communicate with their clients. From a compliance standpoint, one question for planners intent on educating clients about the new tax act was. INSET: Expert Compliance Advice.


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