Brouwer & Janachowski News Bulletin: 2009 Required Minimum Distribution

On December 23, 2008 President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008. It is our understanding that required minimum distribution (RMD) payments from Individual Retirement Accounts (IRA) and certain retirement plans (i.e. 401(k) plans, profit sharing plan, etc.) are waived for the year 2009. According to the new legislation, eligible taxpayers include those who have reached age 70½ who are the respective owners of their IRAs or participate in a qualified retirement plan. In addition, we understand those who have inherited an IRA and would ordinarily take their RMD are also eligible for the waiver. We strongly urge you to consult your tax advisor before making a decision on taking or not taking a distribution from your IRA or retirement plan.