RMD’s and Retirees
I have a client that is 83 years old and is a Pastor for a non-profit ministry. To date, he had not taken and RMD because he had been on disablity payroll through the ministry. In September of 08 he was officially terminated from the ministry. It’s my understanding that he needs to take his 08 RMD by April 1st of 2009. His CPA is telling him that he does not need to take an RMD for 2008. Is there something specific to Pastors that I’m not getting here or is he subject to RMD just like everyone else?
Permalink Submitted by Alan Spross on Thu, 2008-12-18 03:46
When Bush signs the new law, it will only waive 2009 RMDs. The fact that his required beginning date is 4/1/09 does not change the fact that the RMD distribution year is 2008. He must take the RMD by 4/1/09.
I suppose there is still a remote chance of the Treasury coming through with some last minute relief for 2008, so he might as well put this off until 2008 is over. He will probably have less taxable income in 2009 anyway given his late year retirement in 2008.
Permalink Submitted by mk foss on Thu, 2008-12-18 19:49
Some denominations treat pensions to retired clergy as tax free – like a housing allowance. However, Alan has stated the general rule.