Late last year, Congress passed a law that allows folks to suspend the Required Minimum Distribution from their IRAs for 2009. The idea is that, given the market free-fall that occurred late last year, if you would prefer to not take a distribution (since presumably your IRA balance is reduced dramatically), you would not be required to take that distribution for 2009.
Attached here is an article from the WSJ that explores many of the issues that have cropped up with regard to this law. It’s amazing how a seemingly simple provision can cause so many problems – but then again, it is the US government, and specifically the IRS, that is interpreting the law (and not offering much guidance so far).
As always, let me know if you have questions relative to your own situation.
Click the link to pick up a copy of A Social Security Owner's Manual or if you'd prefer the Kindle version (and let's face it, ALL the cool kids do!), you can find that at this Kindle version link.
I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 25 years of experience in the industry. Read more from this author
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".
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