President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008 into law on December 23, 2008. One section of the Act waives any required minimum distributions for 2009 from retirement plans that hold each participant's benefit in an individual account.

Accounts affected include 401(k) plans, 403(b) plans, and some 457(b) plans as well as Individual Retirement Arrangements (IRAs). This means that most participants and beneficiaries in one of these plans that are otherwise required to take a minimum distribution from the plan are not required to withdraw anything in 2009.

This allowance is only for 2009. This means that participants who are required to withdraw for their 2008 required minimum distribution by April 2009 still need to take the 2008 required distribution. They can, however, choose not to take their required distribution for 2009 in the 2009 calendar year.

Individuals that are beneficiaries required to take distributions over a 5 year period can also participate in this Act. If a beneficiary decides to waive the 2009 distribution, he/she can effectively take the distributions over a 6 year period instead.

Contact one of our professionals today to see if any planning can be made for you to take the best advantage of this unique opportunity.