This is part one of a two-part series pertaining to the effects of retirement planning as a result of the new tax law. Since President Bush signed the tax bill into law, there has been a lot of discussion placed on the much-promised “refund.” However, little attention has been given to the area of retirement planning (IRAs, Keogh, and 401(k)s plans.) The purpose of this section of the new law will help Americans and their employers provide for retirement in tax-advantaged saving plans. In addition, an interesting law is in the works regarding required distributions from qualified plans and IRAs that should take effect next year. The second part of this series will deal with the new distribution requirements. However, let us look behind the numbers to see how the new provisions in the tax law and the changes will affect Americans planning for retirement.
Why is this law so important?