Set up an additional traditional or Roth IRA, and fund it now instead of waiting untill April 15. During the first week of January start putting $166.66 a month away for the year 2001. By the time you retire your IRA could earn an extra $19,000 to $59,000 if you fund it monthly instead of at the end of each year. You earn even more if you fund it completely at the start of each year. Make your money work for you!
	Make sure that you utilize your annual gift exclusion before the end of the year. Each of you has the ability to give up to $10,000.00 to any person, every year, with no gift tax reporting requirements, and no gift tax. In the case of husbands and wives, you can join gifts and give up to $20,000.00, per year, to any person/people. This is a simple way to gift money out of your estate with no penalty.
	Grandparents can pay tuition for grandchildren with no gift tax due. REMEMBER, the check must be made directly from the grandparents to the educational institution.
	If you have any charitable intentions, there are some very interesting charitable options available which enable you to receive a current income tax deduction, save on estate taxes, and give to worthy causes by a foundation set up in your name, or a charitable trust. This can also accomplish passing along values of philanthropy to your children.
	Calculate the returns on all your investments. For stocks and bonds, consider selling those that might have gone down in value-you may be able to offset any short term gains on your tax returns-consult your broker.
	On your retirement investments, review the performance of those funds this year, and institute any changes you want to make for next year.
	If you own a business, you should consider the different options of how to most advantageously pass your business along to your heirs and minimize the taxes due.
	If your family circumstances have changed, due to death, birth, divorce, or adversity, you should do a complete review of your estate plan.
	Organize your assets, and if you have a Living Trusts, make sure all of your assets have been properly retitled into the Trust so you accomplish the goal of avoiding costly probate.
	Review your life insurance policies, to make sure they still suit your needs, and are titled properly to make sure the proceeds remain outside your taxable estate, and consider the benefits of Long Term Care insurance.
	If you have significant assets in IRA/Retirement Funds, make sure the beneficiary designation is correct. Also there are some interesting opportunities offshore to protect IRA assets.
	The global arena for tax planning offers many different opportunities than those onshore. For some of you, it may be interesting to explore some offshore alternative to alleviate your income and estate tax burdens.

	New lower income tax brackets
	Marriage Penalty will phase out over four years starting in 2005
	The adoption credit is increased in 2002 to $10,000 per year for special needs children, and $5,250 for non special needs children.
	The Child Tax Credit is increased from $500 to $1,000 by 2010.
	There is now an above the line deduction for qualified higher education expenses, but it vanishes in 2006.
	For eligible taxpayers the interest on Student Loans is deductible and is not limited to $2,500 per year, and the deduction is not limited to the first 60 months loans are due.
	Estate Tax Exclusion is rising in 2002. The unified credit(the amount you can pass to your heirs free of federal estate tax) will be $1,000,000 per person, and rise until it is repealed in 2010 for that year. Then in 2011 it reverts to $1,000,000 per person.
	The gift tax exemption increases to $1,000,000, but remains at that level.
	Normally upon death, there is a step up in basis on the assets owned by the decedent. In 2009, the new law changes so that there is only a step up in basis to $1,300,000, and then capital gains taxes are due. In the case of married couples, the step up in basis if $3,000,000 in addition to the $1,300,000 so long as the property passes to t he spouse outright. If the property is owned jointly with the spouse, one-half qualifies for the basis increase.
	The Generation Skipping Transfer Tax (GST) exemption is 1.5 million in 2002, increases and is repealed in 2010, and then it reverts back to 1 million in 2011.
	Payments received by an employee for tuition, fees, books, etc., under an employer’s educational assistance program are not included as income to the employee, with a $5,000 annual limit. This is better for the employee, and for the employer as well because they will not have to pay social security taxes on these amounts.
	Participants in Employers sponsored plans have increased contribution ability and employees over 50 years old can “catch up” and contribute an additional $5,000 to their plan. (Ira’s and 401k’s) There is also increased portability between different types of plans for people changing jobs. The catch up provision also applies to women who have returned to the workforce after taking time off to raise families.
	Individuals with IRA’s-the contribution increases $1,000 per year beginning in January 2002, and maximizes out to $5000 in 2008, but it will be indexed for the cost of inflation. Defined Contribution Plan limits are increased in 2002 to $40,000 from $35,000.
	Small business’s now have increased dollar limits for employees for contributions to 401(k), 403 (b), and SAR-SEPs to $11,000 in 2002, increasing $1,000 every year until the limit is $15,000, also increased limits for simple plans $6,000 in 2001 with $1,000 increases annually. The qualified family owned business deduction is repealed after 2003.
	In 2002 distributions from Qualified State Tuition Programs (529 Plans) are excludable from gross income so long as the distribution is used to pay for qualifying higher education expenses. This is a way to prepay college expenses, and the earnings in these plans grow tax free.
	Education IRA’s has increased the annual limit from $500 to $2,000, and the phase out levels increased