You Can Cancel Your RMD for 2009

The required minimum distributions (RMD’s) for IRA’s and certain retirement plans have been waived for 2009 according to the Worker, Retiree, and Employer Recovery Act of 2008. Generally, a required minimum distribution is the minimum annual amount that must be withdrawn from an IRA or an employer's pension plan beginning with the year the account owner reaches age 70 ½.

The 2008 law waives required minimum distributions for 2009 for IRA's and defined contribution plans (such as 401(k)s). If you have already taken distributions in 2009 these required minimum distributions can be rolled over into an IRA or another retirement plan.

IRS Notice 2009-82 provides relief for people who have already received a 2009 required minimum distribution this year. Individuals generally have until the later of Nov. 30, 2009, or 60 days after the date the distribution was received, to roll over the distribution.

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