What are the recent changes for IRAs?
In August 2006, the Pension Protection Act of 2006 was passed, which allows for the following: • EGTRRA provisions were made permanent (e.g., catch-up contributions and saver’s credit) • Cost-of-living adjustments, increasing the income limits for taking IRA deductions • Penalty-free distributions from IRAs for certain qualified guardsmen and reservists • Non-spouse beneficiaries may roll plan assets from a Workplace Retirement Plan (e.g., 401(k), QRP) to an Inherited IRA • Income tax refunds can be paid directly to IRAs • In 2009, you will be able to roll your qualified plan funds directly to a Roth IRA. (Important Note: This action is a taxable event.
