2001 Tax Legislation

Congress passed H.R. 1836 (The Economic Growth and Tax Relief Act Reconciliation Act of 2001) on 5/26/01 by a House vote of 240-154 and a Senate vote of 58-33.  President Bush signed it into law on 6/7/01.  The tax bill includes income tax, estate tax and pension provisions.  A 15 page summary is available as a x-50-01.pdf file with more detailed provisions shown in an 8 page budget effects document, x-51-01.pdf.  

Estate changes include increasing the equivalent exemption for estate tax purposes to $1 million in 2002, $1.5 million in 2004, $2 million in 2006, $3.5 million in 2009, with repeal in 2010.  For gift tax purposes, the exemption goes to $1 million in 2002.  In 2002, the 5% surtax and rates in excess of 50% are repealed with top rates going to 49% in 2003, 48% in 2004, 47% in 2005, 46% in 2006, 45% in 2007, and 0% in 2010 for estate tax and the top indiv. income tax rate for the top gift tax rate starting in 2010.  The state death tax credit is reduced by 25% in 2002, 50% in 2003, and 75% in 2004 and repealed in 2005 when it is replaced by a deduction for state death taxes.  

Pension changes include phased-in increases to contribution limits, phased-in additional contribution limits for those 50 and up, increased portability, and Roth 401(k)s starting in 2006.  The legislative language is available in a 186 page file, legtext.pdf and the explanation in a 258 page file, statemgrs.pdf. (5/26/01, updated 5/29/01 and 6/7/01).

The following programs have been updated for the Economic Growth and Tax Relief Reconciliation Act of 2001RetireNow v. 2001.00 (6/11/01) with the new federal estate tax rates and exemptions; Charitable Financial Planner v. 2001.10 (6/26/01) with new estate tax and income tax calculations; Pension & Roth IRA Analyzer v. 6.10 (7/3/01) with new federal estate tax and income tax calculations; PFP Notebook v. 2001.10 (7/3/01) with new federal estate tax, gift tax and income tax calculations; Estate Planning Tools v. 2001.10 (7/26/01) with new federal estate tax, gift tax, GST tax, and income tax calculations plus many other changes; and Estate Planning QuickView v. 5.00 (9/25/01) with new federal estate tax and state death tax calculations.

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Last modified: September 02, 2008