2009 Required Minimum Distributions - Tax Tip of the Week

As you may or may not be aware, the requirement to take a Required Minimum Distribution (RMD) from an IRA or other qualified retirement plan was suspended for 2009.In prior years, anyone over age 70 ½ was required to take an RMD each year.  There was a law passed late in 2008 that removed this requirement.  Because the law changed so late in the year, the IRS is aware that some plan administrators may not have had time to suspend some of the automatic distributions that were programmed into their systems.Many times a taxpayer did not need, nor want, to include these RMDs in their taxable income each year, but they had no choice prior to 2009.So if you, or anyone you know, received an RMD that they do not want included in their 2009 taxable income, you have until November 30, 2009 to rollover this distribution back into their IRA. The IRS just made the announcement of this extended rollover provision so expect some confusion among plan administrators.  Reference them to IRS Notice 2009-82 for guidance.Give us a call if you have any questions.  In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit www.bradstreetcpas.com. ...until next week.