Important Tax Law Change Affects Those Over Age 70 ½ by 12/31/09
The recently passed Worker, Retiree, and Employer Recovery Act of 2008 includes a one-year suspension of the required minimum distributions for 2009 for taxpayers who are 70½ and older.
Under the legislation, no minimum distribution is required for calendar year 2009 from individual retirement plans and employer-provided qualified retirement plans. Thus any annual minimum distribution for 2009 from these plans required under current law is not required to be made. The next required minimum distribution would be for calendar year 2010. This relief applies to life-time distributions to employees and IRA owners and after-death distributions to beneficiaries.
What would you like to do for your 2009 required minimum distributions (RMDs)? If you do not need the cash flow, you MAY be well advised to skip the 2009 distribution. But it depends upon your situation.
Please contact my office if you wish to skip the 2009 distribution or if you are unsure and you wish to discuss it before making a decision.
Under the legislation, no minimum distribution is required for calendar year 2009 from individual retirement plans and employer-provided qualified retirement plans. Thus any annual minimum distribution for 2009 from these plans required under current law is not required to be made. The next required minimum distribution would be for calendar year 2010. This relief applies to life-time distributions to employees and IRA owners and after-death distributions to beneficiaries.
What would you like to do for your 2009 required minimum distributions (RMDs)? If you do not need the cash flow, you MAY be well advised to skip the 2009 distribution. But it depends upon your situation.
Please contact my office if you wish to skip the 2009 distribution or if you are unsure and you wish to discuss it before making a decision.
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