It looks like good news for those taxpayers who are 70 /12 and older. Congress approved legislation that includes a one year suspension of the RMD for 2009. It is expected the president will sign it shortly. In short, you will not need to take the required distribution from IRAs and employer provided qualified retirement plans that are defined contribution plans. The next required distribution will be required in 2010. This applies to employees, IRA owners and after-death distributions to beneficiaries.
The provision is effective for calendar years beginning after December 31, 2008. The provision does not apply to any required minimum distribution for 2008 that is permitted to be made in 2009 by reason of an individual's required beginning date being April 1, 2009.
If you have any questions, please be sure to contact us or your tax professional.
Sandy