Waiver of the 2009 Required Minimum Distribution
January 15, 2009
(PDF 47 kB)
This Tax Insight addresses both the new "Waiver of the 2009 Required Minimum Distribution" rules and the related effect on your 2008 information reporting requirements as well as the rules for "Withholding from Foreign Payments."
Waiver of the 2009 Required Minimum Distribution
Background. Under current law, IRAs and qualified plans are subject to Required Minimum Distribution (RMD) rules of IRC Sec. 401(a)(9). The RMD rules generally require distributions to begin by April 1 of the year following the year in which the account owner reaches age 70½. For IRAs and defined contribution plans, the RMD each year is determined by dividing the account balance as of the end of the prior year by a distribution period, generally a number in the uniform lifetime table.
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