Economic Growth and Tax Reconciliation Act of 2001

President Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001 on June 7, 2001.  Highlights of significant changes include increased pension portability and higher contribution limits to IRAs.

Effective January 1, 2002, Connecticut public school teachers paying for additional service credit or prior membership service are permitted to rollover Section 403(b) Tax Sheltered Annuity (TSA) funds on a pre-tax basis provided they are in receipt of a formal invoice for such service.    

IRA contribution limits for traditional and Roth IRAs will be increased from $2000 to $3,000 in 2002, to $4,000 in 2005, and higher in future years.  A catch-up provision will increase maximum contribution limits for individuals age 50 and above by $500 in 2002 and $1,000 in 2006.