Congress Provides Relief from Minimum Required Distribution from Retirement Plans and IRAs
By Greg K. Hitchcock, Jeff Belfiglio and Richard A. Klobucher
Persons who would be required to receive mandatory payments from a retirement plan or IRA in 2009 may opt not to receive the minimum required distribution for 2009. The Worker, Retiree and Employer Recovery Act of 2008, passed into law on Dec. 23, 2008, included this relief, which means that the previously required 2009 distribution does not have to be made, thereby deferring taxes on such amount. Importantly, this relief also means that no investments have to be sold in order to make the distribution.
This advisory provides an overview of the tax relief the Act provides for both employers and retirees, and includes steps they can take to ensure they make the best use of this opportunity. Continue reading...
