I received a letter from my bank notifying me of the changes beginning Jan 1 if the tax cuts are allowed to expire.
From the letter:
-Maximum annual contribution decreases from $2000 to $500
-The "marriage penalty" will be reinstated by decreasing the joint return contribution phase-out threshold from $190,000 to $150,000 and the singe return phase-out range from $30,000 to $10,000
Elementary and secondary (K-12) education expenses will no longer be treated as qualified education expenses
Tax credits (such as HOPE and Lifetime Learning) can no longer be taken or made in the same year as Coverdell tax-free distributions
-For 2011 contributions, the deadline will be accelerated from April 15 to Dec 31
-The extension of time for penalty-free distribution of excess contributions will be eliminated.
Answer by May-20 at 6:32 AM on Nov. 15, 2010
Answer by Carpy at 5:37 AM on Nov. 15, 2010
Answer by SweetLuci at 9:09 AM on Nov. 15, 2010
Answer by Anonymous at 1:07 AM on Nov. 15, 2010
Answer by lovinangels at 11:21 AM on Nov. 15, 2010
Answer by kerp1960 at 1:45 AM on Nov. 15, 2010
Answer by kerp1960 at 1:50 AM on Nov. 15, 2010