1996 was a busy year for tax legislation. Here are some additional highlights not covered in other articles.
Education
- Employer Assistance: The $5,250 exclusion for employer-provided educational assistance was reinstated retroactively.
- College Savings Plans: Introduction of tax-deferred status for qualified state tuition programs.
Retirement
- SIMPLE Plans: A new, simplified retirement plan for small businesses (Savings Incentive Match Plan for Employees) allows for easier administration.
- Distributions: The 5-year averaging rule for lump-sum distributions will be repealed starting in 2000.
Taxpayer Rights
The Taxpayer Bill of Rights 2 was enacted, providing greater protection for taxpayers during IRS collections and disputes. It created the Office of the Taxpayer Advocate.