Site Logo Retirement Dictionary Financial Advice Retirement Advice

Save time with our cheat sheets, fact sheets, checklists & books!

Get the cheatsheets!

February 20, 2009

Economic Recovery Tax Act of 1981 (ERTA)

Learn More

Print

Definition

ERTA changed the laws to allow participants covered by employer-sponsored plans to make participant contributions to IRAs. Prior to ERTA, only individuals not covered by an employer sponsored plan could make regular contributions to IRAs.

Referring Cite

IRC §

Additional Helpful Information

  • ERTA increased contribution limits to SEP IRAs to $15,000 per year. This has since been increased by other tax laws
  • ERTA made investment in collectives a prohibited transaction.
More

Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Favicon for Retirement Dictionary Financial Advice

 The Retirement Dictionary was created to provide IRAs and employer retirement plan information in an easy-to-understand manner for individuals at all levels of expertise and to help educate everyone about how retirement plans work.

Get Started

About

Categories

Be among the first to know when

IRA Rules
Change