If you have clients who have not taken their 2008 RMDs yet, they must take them before year end. Make sure you get those distribution requests in before the IRA custodian’s year-end cut-off date!!
The Worker, Retiree, and Employer Recovery Act of 2008 is awaiting the President’s signature
This bill passed both the House and the Senate unanimously last week. It is expected that the President will sign it.
One of the provisions of the bill is the suspension of required minimum distributions (RMDs) for 2009 ONLY.
This applies to all RMDs from IRAs and employer plans for account owners AND beneficiaries. This temporary suspension will not affect an individual’s required beginning date. An individual who turns 70 ½ in 2008 and chooses to defer their first distribution to April 1, 2009 must still take that distribution.
Non-spouse Beneficiary Rollovers from Employer Plans Made Mandatory
One of the Pension Protection Act technical corrections in the bill finally makes the non-spouse beneficiary direct rollover provision mandatory for employer plans. All employer plans will be required to allow these direct rollovers to properly titled inherited IRAs after December 31, 2009.
We will have to wait for IRS to issue regulations on these and other provisions of the Act before we will know the full impact of this new tax law.
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