The Crib Sheet | Page 6 | January 2002

## Impact of the 2001 Tax Relief Act on Education With the cost of college increasing, it's important to start saving for your children's college education when they are young. Beginning in January 2002, the new law will greatly expand Education IRAs formerly renamed "Coverdell education savings accounts" . The annual contribution limit increases from $500 to $2,000 in 2002. The deadline for making annual contributions to education IRAs will be extended. Instead of having to contribute by Dec. 31 each year, contributions can made as late as April 15 of the following year. Your contributions aren't tax deductible, but the earnings are tax-exempt, as are the withdrawals when the money is used for qualified expenses for college such as tuition and fees, room and board, books and other supplies. Beginning this year, The new law will permit Education IRA funds to be used for a wide variety of elementary and high school expenses. Included are tuition, fees, academic tutoring, books, supplies, computer equipment, Internet access, software and "special needs services" for special needs students. Another change is that contributions can be made to both an Education IRA and a 529 Plan. For more information on the 2001 Tax Relief Act, check out www.taxplanet.com Submitted by Kim Ortiz, CPA
Happy New Year! 2002 |
## Meeting Checklist Don't forget to bring to the meeting: Mug or Cup - for the beverage cup drawing. White T-Shirt - to decorate. Craft Supplies - for this months service project. Photos - for our scrapbook. Clothes - for the Clothes Closet. Books - for the Council Book Fair.
## Croppin Mama's Joy Little 972-492-9197 January's scrapbooking will be held on January 9th from 10:00am- 2:00pm at the library at Hebron and Josey. Bring your photos and supplies to the meeting room. Please RSVP to Joy Little, 972-492-9197.
## Newsletter Shannon Croft - 214-731-9284 Just a reminder to get February newsletter articles to me by January 15th. Let's all make New Year's Resolutions to get our articles in on time. E-mail me with any submissions, shannon@croftsoft.com. Thank you for all your kind words about the newsletter.

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