Janine, you understood correctly.

The press release is a continuing example of over simplification of the legislation. There is nothing in the law that limits the relief to age 70.5, but there is plenty of background explanation of the entire RMD requirement where age 70.5 is mentioned. As a result, the background explanation results in confusion with the actual law provisions. The following is a copy of the technical explanation of HR 7327:

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Explanation of Provision
Under the provision, no minimum distribution is required for calendar year 2009 from
individual retirement plans and employer-provided qualified retirement plans that are defined
contribution plans (within the meaning of section 414(i)). Thus any annual minimum
distribution for 2009 from these plans required under current law, otherwise determined by
dividing the account balance by a distribution period, is not required to be made. The next
required minimum distribution would be for calendar year 2010. This relief applies to life-time
distributions to employees and IRA owners and after-death distributions to beneficiaries.
In the case of an individual whose required beginning date is April 1, 2010 (e.g., the
individual attained age 70 1/2 in 2009), the first year for which a minimum distribution is
required under current law is 2009. Under the provision, no distribution is required for 2009
and, thus, no distribution will be required to be made by April 1, 2010. However, the provision
does not change the individual’s required beginning date for purposes of determining the
required minimum distribution for calendar years after 2009. Thus, for an individual whose
required beginning date is April 1, 2010, the required minimum distribution for 2010 will be
required to be made no later than the last day of calendar year 2010. If the individual dies on or
after April 1, 2010, the required minimum distribution for the individual’s beneficiary will be
determined using the rule for death on or after the individual’s required beginning date.
If the five year rule applies to an account with respect to any decedent, under the
provision, the five year period is determined without regard to calendar year 2009. Thus, for
example, for an account with respect to an individual who died in 2007, under the provision, the
five year period ends in 2013 instead of 2012.
If all or a portion of a distribution during 2009 is an eligible rollover distribution because
it is no longer a required minimum distribution under this provision, the distribution shall not be
treated as an eligible rollover distribution for purposes of the direct rollover requirement and
notice and written explanation of the direct rollover requirement, as well as the mandatory 20-
percent income tax withholding for eligible rollover distributions, to the extent the distribution
would have been a required minimum distribution for 2009 absent this provision. Thus, for
example, if an employer-provided qualified retirement plan distributes an amount to an
individual during 2009 that is an eligible rollover distribution but would have been a required
minimum distribution for 2009, the plan is permitted but not required to offer the employee a
direct rollover of that amount and provide the employee with a written explanation of the
requirement. If the employee receives the distribution, the distribution is not subject to
mandatory 20-percent income tax withholding, and the employee can roll over the distribution by
contributing it to an eligible retirement plan within 60 days of the distribution.
Effective Date
The provision is effective for calendar years beginning after December 31, 2008.
However, the provision does not apply to any required minimum distribution for 2008 that is
permitted to be made in 2009 by reason of an individual’s required beginning date being April, 2009.
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It’s about time the financial press realized that there ARE actually inherited IRAs in existence. In fact, more and more of them every day………………..

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