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Andy was approaching his 69th birthday and had struggled with this issue for at least four or five years now. It had been almost 25 years ago when Andy resigned his position as a local sheriff and started making fishing rods in the back room of Emmett’s Fixit Shop. It was a struggle at first, to be sure, and if it hadn’t been for the extra income from the pies Aunt Bea and Miss Clara sold, why he may have given up. Yet, Andy...

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Employers are permitted to revise provisions of their plans through a formal amendment. This year many employers will be revising their plans and possibly a whole series of changes without their knowledge when they restate their plans for the required GUST amendments. What employers can do directly or inadvertently is eliminate a benefit option, unless permitted by the Code. The IRS has just made this process a little less challenging...

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Most plan documents will specify that a rehired former employee who had been a participant in the plan will reenter the plan upon rehire. This generally doesn’t pose a problem for profit sharing and pension plans where the employer’s allocation is made at the end of the plan year. It can cause a problem for 401(k) plans. When a participant is eligible to participate in the plan, either on initial eligibility or in a rehire, the...

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On June 7, 2001 President Bush signed into law his $1.35 trillion dollar tax cut, HR 1836, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGATRRA2001). On May 26, 2001, it passed both the House of Representatives (230-197) and the Senate (58-33). The non-controversial pension provisions from Portman-Cardin that passed the House twice with over 400 votes each time were included in the sweeping tax reduction and reform...

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The Continuing Case for Estate Planning President Bush’s signature on The Economic Growth and Tax Relief Reconciliation Act of 2001 did not — and, of course, could not — change the fundamentals of human nature. Before he signed the Act, it was possible to leave your children too much money. It still is. Before he signed, there was an amount — no matter how small — that carried with it the potential for...

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Today’s mergers and acquisitions market, although less robust than several months ago, remains viable for both buyers and sellers. Mergerstat, a provider of global mergers and acquisitions data, reports 4,293 announced transactions in the first six months of 2001 — a drop of 18% from the first half of 2000. Mergerstat also reports a 51% drop in announced deal value compared to the first half of 2000. The situation is not...

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