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How
do
the
Bush
Tax
Changes
Affect
Me?
June
1,
2001
--
The
landmark
tax
reform
legislation
that
recently
passed
both
the
House
and
the
Senate
has
major
ramifications
on
what
investors
should
do
with
their
money,
and
how
its
invested.
"From
the
standpoint
of
education
savings,
the
529
distributions
are
now
coming
out
tax
free,"
says
Tom
Fickinger
of
Merrill
Lynch.
"Which
means
more
money
is
going
to
paying
for
education
and
less
is
going
to
taxes.
From
the
standpoint
of
the
401(k),
there
now
is
a
greater
ability
to
save
more
money
with
limits
going
from
$10,500
up
to
as
much
as
$20,000.
That
will
greatly
enhance
individuals'
ability
to
save
for
retirement."
The
new
legislation
has
some
immediate
benefits,
including
a
rebate
to
taxpayers
by
summer's
end
--
$300
to
single
filers
and
$600
to
married
couples.
There
are
several
things
investors
and
their
advisors
should
take
a
look
at
in
this
new
tax
legislation.
"The
first
is
education
planning,
second
should
be
retirement
planning,
especially
as
it
relates
to
the
new
contribution
limits
and
third
would
be
estate
planning,"
says
Fickinger.
"It's
important
to
understand
however,
this
is
not
a
one
time
fix,
in
fact,
this
will
be
phased
in
over
several
years
so
the
investor
should
be
coming
back
annually,
taking
a
look
at
revising
their
plan
making
sure
they're
taking
full
advantage
of
the
opportunities
in
the
front
of
them."
The
recent
tax
reform
will
not
only
provide
a
tax
rebate,
but
may
also
provide
opportunities
in
the
areas
of
education,
savings,
estate
planning,
and
401(k)
retirement
plans.
Experts
say
working
with
a
qualified
financial
advisor
is
the
best
way
to
take
advantage
of
those
opportunities.
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