RMDs were waived for 2009, but the relief came late in 2008
causing some people to take withdrawals that were not required. This Notice
provides retroactive relief for IRA owners and spouse
beneficiaries by allowing them to rollover (put back) 2009 RMDs
received earlier this year.
IRS is waiving the 60-day rollover deadline to permit any IRA
owner, plan participant, or their spouse beneficiary to undo the 2009 RMD,
regardless of when in 2009 they took the unwanted RMD.
The deadline has been
extended to November 30, 2009 or 60 days from the
date the funds were received, whichever is later. This means your client who
received an RMD (which was not required) in January or March, for example, now
has the option of rolling those funds back into a tax-deferred account.
This relief does NOT apply to non-spouse beneficiaries who are prohibited by the tax code
from ever doing a rollover.
CAUTION:
The one rollover per year rule is still in effect.
This
ruling provides new tax planning opportunities for your clients
who are subject to RMDs, but as with any tax ruling –
there can be costly tax traps as well.
Advisor Benefit!
The
planning and marketing strategies created by this ruling will be covered in
depth at our upcoming 2-Day workshop “Instant IRA Success” in Scottsdale,
AZ, November 5-6, 2009. Great
timing since there is a November 30, 2009 deadline on this new rollover relief. CLICK HERE to find out
more information!
100 Merrick Road Suite 200E Rockville Centre New York 11570
800.663.1340 toll-free 516.536.8282 telephone 516.536.8852 facsmile support@irahelp.com email
