TAXMAN Posted January 9, 2009 Report Posted January 9, 2009 Does anyone know about the new rules for IRA distributions in 2009? thanks in advance. I read both versions and neither one seems to make sense. Does it mean I do not have to take required distribution from IRA or 401 for tax year 2009 only? Quote
JRS Posted January 9, 2009 Report Posted January 9, 2009 According to The Tax Book's interpretation and others that I have read, this is a 2009 provision only. You are not required to take RMD's for 2009, but must take them for 2010. I can find no discussion for extending, but with the economy, a new president and congress, as we know, anything is possible. Quote
TAXMAN Posted January 9, 2009 Author Report Posted January 9, 2009 I kinda figured this was to be what it implied. However I wonder if they will make (force) us to 2 withdraws in 2010. Who knows what will happen? Quote
cred65 Posted January 9, 2009 Report Posted January 9, 2009 Does anyone know about the new rules for IRA distributions in 2009? thanks in advance. I read both versions and neither one seems to make sense. Does it mean I do not have to take required distribution from IRA or 401 for tax year 2009 only? You will not have to take an additional withdraw in 2010 if you waived the 2009 RMD according to Kiplinger's. Quote
JRS Posted January 9, 2009 Report Posted January 9, 2009 Notice 2009-09 provides guidance to financial institutions on the reporting rules applicable to required minimum distributions (“RMDs”) for 2009 in light of the enactment of the Worker, Retiree, and Employer Recovery Act of 2008, P.L. 110-458 (the Act). Section 201 of the Act waives any RMDs for 2009 from individual retirement arrangements (IRAs) and retirement plans that hold participant benefits in individual accounts. This notice modifies the reporting requirements applicable to RMDs from IRAs to reflect the waiver of the RMD rules for 2009. Notice 2009-09 will be in IRB 2009-5, dated February 2, 2009 Quote
OldJack Posted January 10, 2009 Report Posted January 10, 2009 As I understand it, if the taxpayer is required to take a distribution before April 1, 2009 based on the balance of the account at 12/31/2007, the payment is still required by April 1, 2009. This would only be for those taking their first distribution because of reaching the required age. It is the distribution that is based on the balance of the account at 12/31/2008 that is not required to be paid in 2009. The 2010 distribution would be based on the balance of the account as of 12/31/2009. Quote
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