Did You Know ?

 Tax Info

Under the Worker, Retiree, and Employer Recovery Act of 2008, individuals who have attained the age of 70 ½ and have in the past been required to take taxable distributions from their individual retirement and related pension accounts may forego these required distributions in 2009.  The underlying reason for this temporary relief is to allow affected taxpayers the ability to keep their retirement capital invested so that their accounts have a better chance of recovering some of last year’s investment losses.  Required distributions will recommence in 2010. 

In the case of an individual receiving their first required distribution, existing law allows a one-time deferral of withdrawal until the April 1^st following the calendar year in which the individual turns 70 ½.  Because this still counts as a distribution for the previous year, those who turned 70 ½ in 2008 and deferred withdrawal until April of 2009 must still take their required minimum distribution. However, under the new law the same individual will not be required to take a second minimum distribution by December 31^st, 2009. For those individuals who will turn 70 ½ in 2009, they can skip their first required distribution that would have been taken no later than April 1, 2010 and instead take their first minimum distribution by December 31, 2010.

 IRS Releases Cost-of-Living Dollar Limits for the Tax Year 2010.