Late in 2008, Congress suspended required minimum distributions for IRAs for 2009. If you are over age 70½, you don’t have to take an RMD for 2009. Some people did not receive word of the suspension before they took their RMDs in early 2009. Others had periodic distributions scheduled, and the distributions could not be suspended or rescheduled in time to avoid some distributions in 2009.
The IRS announced September 24 in Notice 2009-82 relief for people who took or received RMDs in 2009 and did not want them. The distributions can be rolled over to an IRA by the later of Nov. 30, 2009, and 60 days after the distribution was received. They can be rolled over to the IRA from which they were distributed or to a different IRA. If rolled over, the distributions are not included in gross income.
To be eligible for this treatment, the rollover can’t exceed the amount of the scheduled RMD for the year. Also, no more than one distribution from an IRA in 2009 is eligible. This limit is because there is a one-rollover-per-year limit per IRA in the tax code. The IRS also provided guidance to IRA and retirement plan sponsors to amend their plans and administer the rules.
RW November 2009
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