An individual will not be considered an active participant in an employer-sponsored plan merely because the individual's spouse is an active participant for any part of a plan year. Negotiate with your employer a reimbuseement arrangement plan. Both could save taxes. The kiddie tax does not apply to children 14 and over. Earned income is not subject to the kiddie tax.
Current transfers pay off in later years.
Your second withdrawal, for 2001 must be made by December 31, 2001. There is no provision for adjusting the applicable exclusion amount for inflation after 2006. High income individuals can use the safe harbor by paying 105 percent of the previous year's tax. If you have a household employee and do not have an EIN, For SS-4 needs to be filed now.