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
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...
The Law Firm of Evan H. Farr, P.C.
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...