Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA

What Does Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA Mean?
A tax-related act signed by President George W. Bush in May 2006 that contains revisions to pre-existing tax laws. Revisions include topics concerning investor-related tax breaks, business provisions, individual retirement accounts, "kiddie tax" and alternative minimum taxes.

Also known as Public Law 109-222.

Investopedia explains Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA
For the most part, the provisions are beneficial for the vast majority of taxpayers. For example, lowered capital gain tax rates were extended until 2010 and higher exemption amounts for the alternative minimum tax will enable qualified taxpayers to pay a lower amount of taxes in those areas.

Furthermore, TIPRA also includes some retirement-related benefits. For example, TIPRA enables taxpayers with modified adjusted gross incomes surpassing $100,000 to be eligible for a Roth IRA conversion.

Related Terms

Alternative Minimum Tax
Capital Gain
Modified Adjusted Gross Income - MAGI
Roth IRA
Roth IRA Conversion
Tax Fairness
Taxes
More Related Terms

Related Links

Special Feature: Income Tax Guide - Don’t miss out on tax benefits and significant savings this year! Our Income Tax Guide has everything you ever wanted to know about tax but were afraid to ask.
TIPRA Helps Convert Your Plans And Save More - Learn how to keep more of your money out of the tax man's pocket come retirement.
Capital Gains Tax Cuts For Middle Income Investors - Find out how TIPRA plans to slash taxes for those in the 10-15% tax bracket.
The Simple Tax Math Of Roth Conversions - Roth conversions will be available to affluent taxpayers in 2010. Will you benefit?
A Great Time To Add Roths To Your Retirement Planning - Learn how to decide between a 401(k), 403(b) or Roth to help you build your nest egg.
IRAs: Legislative And Other Updates - Find out what's new in the world of IRAs and how you can get more bang for your buck.
Tax-Law Changes: Involuntary Cash-Out and Roth 401(k) and 403(b) - Stay up-to-date on regulation amendments to avoid penalties as well as take advantage of new opportunities.
Are Roth IRA earnings included in my MAGI?

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