Legislation setting a 35 percent estate tax rate with a $5 million exemption is now law -- at least for two years . . ....Read more
President Signs Pension Overhaul
- August 18th, 2006
President Bush signed a major revision of pension law on August 17, 2006, that is aimed at shoring up private pension plans. The new law requires employers to fully fund their pension plans over the next seven years. Currently, private pension plans are estimated to be underfunded by more than $450 billion. The law also encourages 401(k) plans by allowing employers to automatically enroll employees in these plans.
In addition, the law includes the following provisions:
- The higher 401(k) contribution limits passed in 2001 are now permanent. You can contribute $4,000 a year or $5,000 a year if you are over age 50.
- Companies must give their employees more information about their pensions.
- Anyone who inherits a workplace retirement account may roll the account into an IRA without paying taxes. Previously, only spouses could roll over an account.
- Airlines have 10 years to fully fund their pension plans, 17 years if the airline is in bankruptcy proceedings.
Critics of the law worry that the provisions encouraging 401(k)s will mean employers will stop offering traditional pension plans that provide a reliable retirement income stream for employees.
For more information on retirement planning, click here.
Local Elder Law Attorneys in Ashburn, VA
Hale Ball Carlson Baumgartner Murphy PLC
Loretta Morris Williams is a certified elder law attorney by the National Elder Law Foundation. Ms. Williams was admitted to the Council of Advanced Practitioners, National Academy of Elder Law Attorneys (NAELA) in 2012. She serves as President of the Virginia Academy of Elder Law Attorneys. Ms. Willia...
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Needham Mitnick & Pollack, PLC
Susan Pollack served as Chairperson of the Falls Church Senior Citizens Commission from 1997 to 2011 and was on the Executive Board of the Falls Church Education Foundation. She has also served on the Board of Directors of the Alzheimer’s Association of the National Capital Area and is a member of the Arlington B...