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The new minimum distribution rules announced in January 2001 apply to qualified plans under IRC section 401(a) and to individual retirement plans. Roth IRAs are not subject to minimum distribution [...]

Donors who plan to make lifetime gifts to minors aim to avail of the annual gift tax exclusion of $10,000, which will entirely remove the lesser of the annual gift tax exclusion or the value of the gift from the their gift and estate tax base. Gifts to minors can be legally accomplished through direct, outright giving, guardianship or trusts. In transferring gifts to minors, the Uniform Gifts to Minors Act (UGMA) and the newer Uniform Transfers to Minors Act (UTMA) present a number of tax and nontax advantages, particularly for gifts of relatively modest amounts whose range is within the annual gift tax exclusion. Although both are geared towards facilitating gifts of certain property to minors, the UTMA has proven to be broader and more flexible than the UGMA. However, all transfers made before the implementation of the UTMA are still governed by the UGMA.

Some of the more important and significant provisions that affect educational tax benefits in the recently enacted Economic Growth and Tax Relief Reconciliation Act of 2001 relate to qualified state [...]

The following chart summarizes the changes made to IRC section 529 Qualified State Tuition Programs (QSTP) by the Economic Growth and Tax Relief Reconciliation Act of 2001. The new provisions [...]

CONGRESS AUTHORIZED INDIVIDUAL STATES to create qualified state tuition programs (QSTP) in 1996. State-sponsored plans that satisfy the qualification requirements of IRC section 529 are treated as tax-exempt entities. They [...]

Taxpayers can deduct certain medical expenses. Unreimbursed expenses are covered as deductible items under Sec 213(a) if the aggregate amount paid for the year is more than 7.5% of adjusted gross income. This deduction is not restricted by an annual deduction ceiling, which means that deduction applies to all medical care expenses that are paid during the tax year. Furthermore, this deduction is not subject to the itemized deduction phaseout rules. According to Sec 213(d)(1), medical care covers all payments made for the diagnosis, cure, mitigation, treatment or prevention of a disease, and payments for services that affect any structure or function of the body. Preventive measures such as physical and dental checkups by healthy persons are also deductible. Also covered are transportation, qualified long-term care services, and insurance.