(1888PressRelease)
August 24, 2006 - The new 1,000 page bill is the first comprehensive pension legislation in 30 years and it is designed to prevent employer bailout from traditional private pension plans while enhancing long range retirement planning.
The “Pension Protection Act of 2006” accomplishes a number of things such as:
• Strengthening traditional pension plans and stabilizing troubled pension plans to discourage employers from resorting to bankruptcy. According to the tax briefing, there are approximately 30,000 pension plans that are currently underfunded.
• Extending and improving more than 20 retirement tax savings benefits. For example, the rules pertaining to 401K plans and IRAs have been enhanced with regard to hardship withdrawals, non-spouse beneficiary plan rollover and more.
• Permanent EGTRRA retirement provisions, which make permanent catch-up contributions for older workers, increased contribution limits and benefits, in addition to other retirement savings incentives. Overall, long range retirement planning is enhanced.
• New, stricter rules governing specific charitable donations of cash, clothing, household items, easements and other items. Additionally, taxpayers are now able to make tax-free distributions from IRAs for charitable purposes.
• Permanent extension of the rules allowing for Section 529 qualified tuition programs.
• Tighter controls on tax exempt organizations and increased federal oversight of charitable organizations which include heightened reporting requirements; tougher penalties for wrongful activities and greater scrutiny of donor advised funds.
“The new legislation is detail intensive and affects many taxpayers. Several temporary changes have been made permanent to IRA’s, Roth IRAs, 401(k) Plans, Roth 401(k) Plans, as well as amendments to college savings plans. New rules related to charitable deductions are pretty significant. Taxpayers should definitely consult their accountant with any questions,” explained Steve Rodman of Rodman & Rodman, P.C.
Rodman & Rodman, P.C.
Founded in 1961, Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies throughout New England. With a focus on strategic planning, Rodman & Rodman goes beyond traditional accounting services and takes a proactive approach when serving clients to increase, preserve and sustain clients’ financial net worth.
From business valuations, taxation, audits, fraud detection and prevention services and succession planning to a variety of accounting IT services including software selection, implementation and training, the team at Rodman & Rodman serves as comprehensive advisors to clients. For individual clients, the company offers personal advisory services such as planning for real estate transactions, obtaining financing, estate planning and retirement planning as well as planning for college education.
Rodman & Rodman Certified Public Accountants are located at 3 Newton Executive Park, Suite 101 in Newton, Mass.
For more information, visit their website at www.rodmancpa.com or contact Jen Reading at (617) 965-5959.
CONTACT: Steven V. Dubin, PR Works, (781) 582-1061, sdubin ( @ ) prworkzone dot com
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