In case you missed, the annual Required Minimum Distribution (RMD) for IRAs and pension plans has been waived for the year 2009. This applies only to those investors over 70-1/2 years of age.
Here’s some of the wording:
On December 23, 2008 The Worker, Retiree, and Employer Recovery Act of 2008 was signed into law by President Bush. This new law will grant a temporary waiver of the required minimum distribution (RMD) from retirement accounts for the 2009 tax year only. The waiver would apply to individual retirement accounts (IRAs) and employer-provided contribution plans (QRPs, Keoghs, Individual 401(k)s, and 403(b)(7)s).
Requirements for 2008 remain unchanged at this time so clients who were over age 70 ½ in 2008 are required to take their RMD by December 31, 2008, and if they just turned 70 1/2 in 2008, they are still required to take their 1st RMD by April 1 2009.
If this is of interest to you, you can reference the full text in the above link. If it does not apply to you, please mention it to anyone over the stipulated age.
Comments 1
The 2009 RMD waiver also includes beneficiaries of inherited IRA's, etc. under 70 1/2 who were subject to annual distributions.