New Rules for IRAs
A new federal law will let you skip the 2009 required minimum distributions (RMDs) on your tax-deferred retirement accounts. Signed into law on December 23, 2008, The Worker, Retiree and Employer Recovery Act of 2008 waives the RMD requirement only for tax year 2009. The waiver applies to individual retirement accounts (IRAs) and employer-provided contribution plans such as QRPs, Keoghs, Individual 401(k)s, and 403(b)(7)s. However, the legislation does not waive any 2008 RMD due by April 1, 2009. An article from the IRS, available by clicking here, provides additional details.
In addition, different tax legislation enacted on October 3, 2008, reinstated a 2007 law that permits charitable contributions to be made directly from IRAs. Under the new law, individuals age 70 ½ or older may donate as much as $100,000 from an IRA to qualified public charities only during the 2009 tax year. While no income taxes are due on the charitable rollover, the gift may not be itemized as a charitable deduction. A helpful article on the topic from Council on Foundations, is available by clicking here.
Innovest highly encourages readers to contact their tax advisors should they have specific questions about how these tax laws may pertain to their personal situations.