Daycare Tax Tips

Required Minimum Distributions Waived for 2009

Don't need your RMD?

Required minimum distributions (RMDs) from qualified plans [i.e., 401(k), 403(b), 457(b), etc.] and IRAs have been waived for 2009 only. Thus, you do not have to take an RMD for 2009 if you are the account owner or a beneficiary. If you already withdrew your RMD for 2009, you may be able to roll it over to an eligible retirement plan within 60 days.

The 2008 RMD was not waived, so if you turned 70½ in 2008 and chose to delay taking your RMD until April 1, 2009, you should have taken your 2008 RMD by then. However, you do not have to take a 2009 RMD, so you won’t have to include two RMDs in your gross income in 2009.

If you are a beneficiary receiving distributions over a five-year period, you can waive the distribution for 2009. This effectively allows you to take distributions over a six-year period.

Posted on 2009-06-27 00:12:33