mrd distributions for 2008
have you heard anything about congress passing a bill that allows a client to not have to take their min. req. dist. from trad. iras for 2008? steve jackson
have you heard anything about congress passing a bill that allows a client to not have to take their min. req. dist. from trad. iras for 2008? steve jackson
Permalink Submitted by Jose Morales on Wed, 2008-12-17 16:53
There are several other topics that cover this subject already. Apparently a bill has been passed that suspends mandatory distributions for 2009. This bill has yet to be signed by the president. There is no language in the bill that addresses 2008 mandatory distributions. All talk of 2008 mandatory distributions is speculation at this point. If you do not take your mandatory distribution by December 31st in the hopes that the requirement will be waived you will be subject to the 50% excess accumulation tax penalty.
Permalink Submitted by Nelson Champine on Wed, 2008-12-17 16:56
http://www.kiplinger.com/features/archives/2008/12/no-required-minimum-d…
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/16/AR200812…
This would be a very welcome change if you are (or will be) 70 1/2 and want to give your IRA a chance to rest and recuperate.
Nothing on the TSP website yet, but this should apply to 403B’s and the government Thrift Savings Plan, I hope.
Permalink Submitted by Marvin Rotenberg on Wed, 2008-12-17 17:02
No. It appears now that nothing will happen for 2008. However, The Worker, Retiree, and Employer Recovery Act of 2008 has been approved by the Senate and House and is expected to be signed by the Presendent.
This bill is for 2009 and would allow an IRA owner, beneficiary not to take the RMD and avoid the 50% penalty.
We will up date everyone when and if it is signed.
Permalink Submitted by Al Fry on Wed, 2008-12-17 17:50
Again, if one must make the 2008 RMD, it may not be too late to move out some growth assets in kind, to grow outside the IRA and be utimately taxed at Cap Gains v. ordinary income later. Hpoefully, this will be a rare opportunity.
Permalink Submitted by Marcia Brill on Mon, 2008-12-22 23:24
Hello Alan,
Thanks for all your advice. Probably taking most of the rmd from the money market fund that is doing well. I don’t know if that’s a good idea because I just don’t think the market will be good and my funds will do well.
If you think I am wrong, would appreciate an answer.
Permalink Submitted by charles lore on Tue, 2008-12-23 01:22
The source of the funding of your rmd really has nothing to do with executing a strategy based on your views of the market. If you funded rmd from MM you can always take that cash and buy xyz in the non ira and establish a basis as of purchase. This is really no different than funding rmd with xyz stock from the ira where the basis is establish the day it hits the taxable account.