MORTGAGE INSURANCE PREMIUM DEDUCTION

New for 2007, qualified mortgage insurance premiums will be deductible like deductible mortgage interest.

Rollovers

An employee who is eligible to receive a lump sum distribution from a retirement plan can elect to roll over the lump sum distribution to an IRA or to another qualified plan. This rollover is tax-free and further defers the tax on the lump sum while allowing continual tax-free buildup. In almost every instance, the best way to accomplish the rollover is through a direct, trustee-to-trustee transfer, in which the money moves directly from one financial institution to another.