In an effort to provide relief from selling investments that may be depressed in value, a new law suspends required minimum distribution from IRA accounts in 2009.
-The law does not apply to Roth IRAs
- The law impacts 2009 ONLY
- Clients that turned 70 1/2 during 2008 and planned on taking their first withdrawal by the April 1, 2009 deadline still must do so (even though the distribution will occur in 2009, the distribution is for the 2008 calendar year.)
- Clients that turn 70 1/2 during 2009 are not required to withdraw funds in 2009. These clients will still be treated as reaching their required beginning date in 2009 and, accordingly, their first RMD is due by December 31, 2010.
- The new law applies to beneficiaries of deceased IRA owners who are required to take an RMD.
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JPM Clearing Corp. and Burnham Securities Inc. do not provide tax or legal advice. For more information regarding this recent development, please contact your tax or legal advisor.