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New Tax Law Makes Qualified Retirement Plans More Attractive

New Tax Law Makes Qualified Retirement Plans More Attractive


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by Gayle M. Meadors, P.C.
A series of pension reforms was part of the massive tax legislation known as the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) signed by President Bush in June of 2001. These reforms are intended to make qualified retirement plans more attractive to current and future sponsors by increasing the dollar amounts that can be sheltered and by easing many administrative rules which were perceived as discouraging the formation of qualified retirement plans, especially by small employers.