| Income tax rate cuts and rebate checks are just the beginning. The Tax Act of 2001 includes provisions that could impact many aspects of your financial security, from college savings to retirement planning and estate planning.
Use this checklist as a guide as you and your investment representative discuss an action plan to address the tax law changes.
Income Tax Cuts — Effective 7/1/01
• Resolve to put that rebate check to work by investing it. Earmark it to help with your 2001 IRA contribution.
• What will the reduction in tax rates mean in terms of spendable income or increased savings for you?
Retirement Planning — Effective 1/1/02
• Give your IRA a raise. You can make a $3,000 contribution in 2002.
• If you are 50+, you may be able to make catch-up contributions to your IRA. Increasing contributions now means more security during retirement. An eligible married couple could contribute $7,000 in 2002.
• Maximize your contribution to your employer’s retirement plan. Limits will increase.
• If you have a 40(k), 457 plan or 403(b) annuity, are you aware of your new options for rollovers?
• Tax credits for making a retirement plan or IRA contribution will be available to eligible investors. This will be particularly applicable to beginning investors. (Income limits apply.)
Retirement Planning for Small Business Owners — Effective 1/1/02
• Tax Relief has made it easier to offer an employee retirement plan. In some cases, it will even help foot the bill.
• Contribution and deductibility limits increase on qualified plans. This means more money accumulates in your retirement plan and you save more money on taxes.
College Savings — Effective 1/1/02
• Tax-free withdrawals from qualified state tuition plans (529 plans) can mean more money available to pay college expenses. You can fund a plan today to take advantage of this future benefit.
• Education IRAs have a new name — Coverdell education savings accounts, and a new annual contribution limit — $2,000 vs. $500. Maximize your contribution to make that college savings fund grow faster.
Estate Planning— Effective 1/1/02
• If you have an estate plan, meet with your investment representative and attorney to review it in light of new provisions. Make sure it still accomplishes what you want it to for your heirs.
• If you do not have an estate plan, talk to your investment representative and attorney about your planning options.
Don’t delay. Work with your investment representative to put a plan in place to take advantage of all available tax advantages the new tax plan offers. | 
