Family Tax Relief Estate & Gift Reform Retirement Plan Incentives

EDUCATION INCENTIVES

Improved Education IRAs

Several improvements to Education IRAs begin in 2002. Key provisions include:

· Increased annual contribution limits from $500 to $2,000 per year,

· Increased income phase-out range to $190,000-$220,000 of income for married contributor eligibility,

· Distributions allowed for public, private, or religious K-12 expenses,

· Annual contributions permitted until April 15^th for the prior year, and

· Repeal all age limits on contributions and disbursements for special-needs students.

Expanded Student Loan Interest Expense Deduction

For student loan interest paid after 2001, the income phase-out ranges for deductible loan interest increase to:

· $50,000 to $65,000 for single, and

· $100,000 to $130,000 for married taxpayers filing joint returns.

The new law repeals the 60-month limit on the number of months interest on a qualified education loan is deductible and also repeals the restriction that voluntary payments of interest are not deductible.

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Family Tax Relief

Education Incentives

Estate & Gift Reform

Retirement Plan Incentives