Required Minimum Distributions For 2009
October 23, 2009
This is a reminder that the required minimum distribution (“RMD”) requirements that apply to IRAs and certain employer-based retirement plans (qualified plans, 403(a)s, 403(b)s, and 457(b)s) have been waived for RMDs that ordinarily would have been required for 2009, except in the case of defined benefit plans. IRS Notice 2009-82 provides guidance on the application of the waiver to different situations, including guidance concerning RMDs that have already been made for 2009 (generally they may be rolled into an IRA or retirement plan by the later of 60 days from the date of the distribution and November 30, 2009). IRA documents are not required to be amended pending guidance from the IRS. However, sponsors of other retirement plans that wish to avail themselves of the waiver generally must adopt an amendment to their plan document no later than the last day of the first plan year that begins on or after January 1, 2011. Thus, a calendar year plan would need to be amended by December 31, 2011, and a plan with a June 30 year end would need to be amended by June 30, 2012. There have been some proposals in Congress to extend the waiver an additional year, but no such extension has been enacted. We will keep you advised should that occur.
For more information, contact one of the following:
Debra J. Linder
Direct Dial: 612-492-7163
Email: dlinder@fredlaw.com
Cari L. Martell
Direct Dial: 612.492.7438
Email: cmartell@fredlaw.com
John H. Merkle
Direct Dial: (612) 492-7027
Email: jmerkle@fredlaw.com
James B. Platt
Direct Dial: (612) 492-7047
Email: jplatt@fredlaw.com