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.