Required Minimum Distribution (RMD) Relief for 2008?
As I noted a week ago, both the House and the Senate have voted to suspend the Required Minimum Distribution (RMD) for 2009. Unfortunately for those hoping for relief in 2008, this news was too little, too late. That being said, the Treasury Department has the authority to grant RMD relief for 2008, and they’ve apparently been studying their options.
While I haven’t heard anything official one way or another, a reader named Howard has been in touch with the legislative staff of the House Ways and Means Committee. According to him, the Treasury has decided that there’s nothing that they can do for 2008 (see comments here and here). So… Assuming he’s correct, those hoping for an RMD waiver in 2008 are out of luck.
Not sure what the heck we’re talking about?
Check out “What is a Required Minimum Distribution (RMD)?” In short, it’s a mandatory withdrawal that retirees have to take from their retirement accounts once they reach the age of 70-1/2, and there has been concern that retirees who didn’t take their RMD early in the year would be forced to withdraw a disproportionate amount of their funds.
Published on December 18th, 2008 - 5 Comments
Filed under: Retirement, Saving & Investing, Taxes
email this article
- bookmark it
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» Should You Skip Your Required Minimum Distribution (RMD) in 2009?» What is a Required Minimum Distribution (RMD)?
» House Votes to Suspend Required Minimum Distribution (RMD) for 2009
» Retirement Withdrawal Strategies
» Sales Tax Holidays Reconsidered
» Undoing Roth IRA Contribution Mistakes
» What Goes Into the Price of Gas?
» Another Stimulus Check? Second Time is the Charm
Was this article useful? Please sign up to receive our content via e-mail:
Great deals...
Readers’ choice...
Recent articles...
- Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score
- DIY Garage Kayak Racks: Fast, Frugal, and Effective
- Lending Club $25 Bonus Reminder
- Coupons are a Waste?
- How to Save Money on Pet Care
- Best HSA Custodian?
- Considering a High Deductible Health Plan
- Pay Back the Homebuyer Tax Credit?
- How to Find a Good Deal
- How Much Does Your Debt Cost?
Recent comments...
- Merry: I have two questions. I have been making an extra regular mortgage payment in...
- iris bobi: I went to contract 4-2009 and going to close on my house either December...
- Tim Rosen: Pros and Cons: Pros: a.) A systematic discipline to save/invest on a regular basis, for a...
- Matt Jabs: @Tim: Thanks, I hope this article helps get even one person on the...
- Tim Rosen: Excellent Matt! A very practical, real-world plan that I believe anyone can "flesh out"....
- Jerry Robertson: Your article has great information about the large companies going out of business, but...
- laura: I have a foreclosure on my credit from Jan 2007 and my FICO score...
- nickel: Ron: Good question, and I have no idea as to the answer. It could...
Most talked about...
- Dave Ramsey is Bad at Math
- $8,000 Homebuyer Tax Credit
- Dish Network Customer Service SUCKS
- How to Claim the First-Time Homebuyer Tax Credit
- $15,000 Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- Would the "Fair Tax" Gut the Economy?
- Tax Stimulus Rebate Payments to Start Early
- Pay Off Mortgage Early? Or Invest?
- The Best Online Savings Accounts (Updated!)
- Life's Too Short to Drink Cheap Beer
- $7500 First Time Homebuyer Tax Credit
Stumble It!
Digg It!
Tip It!
del.ico.us
Facebook
It appears that it is too late for those of us who have already taken out the RMD for 2008.
Comment by Sarah Tintor — Dec 29th 2008 @ 2:08 pmI work in a financial advisory firm. I feel so bad for our clients who are being forced to take large amounts of money — based on last year’s much higher account values — from accounts now worth much, much less. Some people set their RMDs up automatically for later in the year, to pay property taxes or even just for holiday spending.
There still should be some way to protect anyone who took their RMDs in 2008. Many of our clients would rather keep the money invested. We have a lot of 403b clients, too, who have to go through extra hoops for money that clearly the government now thinks they shouldn’t have to take out.
At least 2009 seems to be decided. I can’t wait to start telling people …
Comment by Stella C — Dec 30th 2008 @ 10:49 amHow can someone have already taken distribution for 2008 if the amount is calculated based on the value on Dec 31?
Comment by Michael Navatta — Jan 2nd 2009 @ 9:33 amMichael: It’s based on Dec 31 of the previous year.
My wife is 6 years younger than myself. Can I rollover my 401(k) to an IRA in her name and delay the RMD until she reaches 70 1/2?
Comment by Jeff — Jan 16th 2009 @ 1:54 pm