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Planning: Tools & Services > Estate Strategies > New Estate Tax Bill
EGTRRA 2001

How does the tax bill affect estate taxes?
When President Bush signed into law the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001), he gave final approval to the largest tax cut in 20 years. In addition to reducing federal income tax rates and expanding individual contribution limits for IRAs and qualified retirement plans, the new tax law includes the phased-in elimination of the federal estate tax.

EGTRRA 2001 reduces the top estate tax rate from 55 percent to 50 percent in 2002 and then by 1 percent annually until reaching 45 percent in 2007. The tax will be completely eliminated in 2010 but may be reinstated in 2011 due to the "sunset provision." It also substantially increases the amount that individuals can pass free of federal estate taxes to their heirs from $1 million in 2002 to $3.5 million in year 2009. With proper planning, this amount can be doubled for married couples.

 

 
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Thrivent Financial for Lutherans, Appleton, WI 54919-0001, is authorized to conduct business in all 50 states and the District of Columbia. NAIC # 2938-56014. Products issued by Thrivent Financial for Lutherans are available to applicants who meet membership, insurability, U.S. citizenship and residency requirements. Not all products described are available in all states. Thrivent Financial representatives are licensed insurance agents. Insurance and retirement products, where available, are individual contracts, (not group coverage), and issued by Thrivent Financial for Lutherans. Investment products are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415-1665, a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA. Member SIPC. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc.

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This document was last updated on Friday, July 7, 2006 at 12:27 PM