Mandatory Minimum Withdraws in 2009
Posted on Jul 27, 2009
I have mentioned this legal and tax change before, but it bears repeating. Due to certain congessional changes enacted as a result of the financial crisis, no required minimum distributions (RMDs) for IRAs will be required for the calendar year 2009. The Worker, Retiree, and Employer Recovery Act of 2008 suspended RMDs for this calendar year only. No minimum distribution will be required from IRAs for the 2009 calendar year. An individual who reached age 70½ prior to 2009 would normally be required to take his or her 2009 RMD no later than December 31, 2009. As a result of this legislation, that RMD will not have to be made. An individual with an IRA who is 70½ or older will still be responsible for taking an RMD for the 2010 calendar year on or by December 31, 2010 unless there is further legislation.
David M. Frees III