Good News for Retirees
Thanks to the Worker, Retiree and Employer Recovery Act (H.R. 7327) investors over the age of 70 ½ will not be required to take their Required Minimum distributions (RMDs) in 2009. This waiver applies to all defined-contribution plans, including 401(k), 403(b), 457(b), and IRA accounts. Lawmakers who voted for the measure suspending RMDs in 2009 said it was unfair to require retirees to withdraw money from retirement accounts already reduced in value by the stock market selloff. Instead of being forced to sell investments to take their RMD, they’ll be able to sit tight and wait for a recovery.
If you take a withdrawal that would qualify as a 2009 RMD, you may be eligible to reinvest the money within 60 days, subject to IRS rollover rules. (Distributions from inherited IRAs are not eligible to be rolled over.)
For more information regarding how you may be impacted, contact Gill Capital Partners at 800-288-3777 or by going to www.gillinvest.com.