Advanced Underwriting Consultants

RMD Suspension for 2009

Most have heard by now that Congress and the President have enacted legislation that suspends RMDs for 2009.  The new rules affect both IRAs and qualified plans.

We have had a number of questions about how the new rules affect those turning 70 1/2 in 2008 and 2009.  The situation is not 100% clear for either case.  We do expect the Service to issue regulations or other clarification soon.

After the clarification is issued, we expect that the rules will provide:

  • those who turned 70 1/2 in 2008 will have to make their first RMD distribution by April 1, 2009, but will not have to take their second RMD distribution by December 31, 2009
  • those who turn 70 1/2 in 2009 will not have to make their first RMD distribution by April 1, 2010, but will have to take their first RMD distribution by December 31, 2010

Larry Owens