The 2001 Tax Relief Act tax deferred vehicles
401k
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Under the new law, the contribution can be lesser of $40,000 or 100% of compensation. As a result, if you were making $40,000 you can put away your entire salary tax deferred. Provided ofcourse that you have other ways of paying bills.
Changes To IRAs
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Beginning in 2002 the contribution limit will be $3,000 per year for the next 3 years with $500 per year in catch up contributions
senior IRA investor
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if you are 50 years or older next year, to make that additional catch up contribution. This type of IRA investor will be known as a senior IRA investor. If you are in an employer sponsored program such as a 401K, you can also make additional catch up contributions in increments that start at $1,000 dollars next year and go up to $5,000 in 2006.
Tax Relief For Education
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Investors can put more into the Educational IRA. Starting next year the annual contribution limit will be $2,000 up from its original limit of $500.
The changes also allow for the proceeds of the educational IRA to be used for elementary and secondary school. If one qualifies, one can use the proceeds of I-Bonds to pay for approved college expenses. Approved college expenses include things like tuition and lab fees, but not room and board or books.
ibonds = ira tax defer 30yrs.
-Bonds allow you to defer taxes all the way out to 30 years and the rates are attractive. One limitation with I-Bonds is that you are only allowed to purchase up to $30,000 per person per calendar year.
They should be held for a minimum of 5 years to avoid the 3 month interest penalty.
The money being used to purchase the bonds is fixed income money
following calc is userful if you entered date and 10k amount (10k*3*# of acts) would give u your
return to the date and also has future date calculations.
There is also a way to enter certificate number then you dont have to do all those mulipliations. Anyway this is a side show for me. Not to spend too much time on it.
publicdebt.treas.gov
enttered date of 05/2002
locked in rate
10/2001 I $10,000 $10,000.00 $196.00 $10,196.00 5.42% 06/2002 10/2031 P5
04/2001 I 10,000 10,000.00 540.00 10,540.00 5.82% 06/2002 04/2031 P5
08/2000 I 10,000 10,000.00 1,076.00 11,076.00 6.02% 06/2002 08/2030 P5
Bonds 3 Total Price
$30,000.00 Total Interest $1,812.00 Total Value $31,812.00 YTD Interest $764.00
informative avnt msg. cc from last Qurter.
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