New Pension Law
Here are the highlights of those tax changes.
- Higher contribution limits for retirement plans made permanent.
- Roth 401(k)s made permanent.
- Saver's credit made permanent and income phase-out adjusted for inflation after 2006.
- $500 retirement plan start-up credit for businesses made permanent.
- AGI phase-out ranges for IRA contributions indexed for inflation.
- Nonspouse beneficiaries allowed to roll over distributions from decedent's retirement plan.
- Tax refunds can be directly deposited into IRAs.
- No 10% early withdrawal penalty on early retirement plan distribution for certain military reservists and public safety employees.
- Section 529 plans favorable tax treatment made permanent.
- Cash donations will require bank record or written documentation from charity.
- Charitable deduction for used clothing and household goods allowed only for items in "good" condition.
- Certain IRA withdrawals directly donated to charity temporarily allowed tax-free
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