Economic Growth And Tax Relief Reconciliation Act of 2001 - EGTRRA

AAA

DEFINITION of 'Economic Growth And Tax Relief Reconciliation Act of 2001 - EGTRRA'

A U.S. tax law, effective for tax years beginning 2002, that made some of the most important changes to retirement plans, including increased contributions and deductibility limits for IRA and employer-sponsored plans, and expanded the portability rules for retirement plans in general. EGTRRA also increased the estate-tax exclusion and increased the generation-skipping transfer-tax exemption amounts.

INVESTOPEDIA EXPLAINS 'Economic Growth And Tax Relief Reconciliation Act of 2001 - EGTRRA'

Many of the changes brought about by EGTRRA are scheduled to sunset in 2010. This means that unless new laws are passed to extend these provisions, things will revert to the way they were before EGTRRA. Taxpayers would do well to take advantage of as much of the EGTRRA provisions as they can before the provisions sunset.

RELATED TERMS
  1. KSOP

    A qualified retirement plan that combines an employee's stock ...
  2. Catch-Up Contribution

    A type of retirement savings contribution that allows people ...
  3. Pension Protection Act Of 2006 ...

    An act of legislation that makes a large number of reforms to ...
  4. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt ...
  6. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
Related Articles
  1. Retirement

    How is an SBO-401(k) set up?

    Learn what a Small Business Owner 401(k) plan is and who is eligible to establish one. Find out what the IRS requires of SBO-401(k) participants.
  2. Retirement

    Why were 401(k) plans created?

    Discover why consultant Ted Benna created 401(k) plans after noticing the Revenue Act of 1978 could be used to set up simple, tax-exempt retirement accounts.
  3. Taxes

    3 Retirement Account Rules To Know

    Stay up-to-date on regulation amendments to avoid penalties as well as take advantage of new opportunities.
  4. Mutual Funds & ETFs

    ETFs For Your 401(k)?

    Investor ownership of ETFs has grown a lot over the last decade. Discover how they can fit into your retirement plan.
  5. Taxes

    Dividend Tax Rates: What Investors Need To Know

    Find out how legislation enacted in 2003 is benefiting both investors and corporations, and when it's scheduled to expire.
  6. Taxes

    How To Save More For Your Retirement

    The Economic Growth and Tax Relief Reconciliation Act of 2001 made it easier to prepare for the future. Will you be ready?
  7. Retirement

    Roth 401(k), 403(b): Which Is Right For You?

    Learn how to decide between a 401(k), 403(b) or Roth to help you build your nest egg.
  8. Options & Futures

    Know The Rules For Roth 401(k) Rollovers

    Rolling a Roth 401(k) into a Roth IRA is usually the optimal thing to do.
  9. Retirement

    Transfer Retirement Savings When You Change Jobs

    Half of Americans lose their nest eggs when they switch careers. Learn why you should avoid this trap.
  10. Personal Finance

    Get Ready For The Estate Tax Phase-Out

    Changes to federal legislation will affect how your assets are treated once you're gone - be prepared.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center