Headlines about "Distributions - req. minimums"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] 2009 Required Minimum Distributions: Plan Sponsors Have Decisions to Make by November 30, 2009
Excerpt: "Plan sponsors must decide by November 30, 2009, how the plan will treat 2009 RMDs. Plan sponsors have three choices: . . . ." (Warner Norcross & Judd)
[Guidance Overview] Employers Must Make 2009 Required Minimum Distribution Decisions by November 30 (PDF)
Excerpt: "Pursuant to Notice 2009-82, employers must decide by November 30, 2009, whether to: * Suspend all RMDs for 2009, unless the participant affirmatively requests the distribution; * Distribute all RMDs for 2009, unless the participant affirmatively requests the waiver; * Continue RMDs for 2009 in accordance with plan provisions without a choice participants. In addition, employers will need to decide by November 30, 2009, whether and to what direct rollovers of distributions containing 2009 RMDs will be offered to participants." (Womble Carlyle)
[Guidance Overview] Guidance Provided in September on Waivers of 2009 Required Minimum Distributions (PDF)
Excerpt: "On September 24, 2009, the IRS released Notice 2009-82, which provides relief for individuals who have already received 2009 RMDs, as well as sponsors of plans that may or may not have paid 2009 RMDs." (Prudential Pension Analyst)
[Guidance Overview] Guidance on Waiving 2009 Required Minimum Distributions
Excerpt: "Notice 2009-82 requires plan sponsors to take the following actions: Decide by November 30, 2009 how the plan intends to treat 2009 RMDs. Plan sponsors may choose among the following three options: Suspend all RMDs for the 2009 plan year, unless a participant affirmatively requests a distribution; Distribute all RMDs for the 2009 plan year, unless a participant affirmatively elects otherwise; or Continue RMDs in accordance with the terms of the plan with no choice by the participant. Decide by November 30, 2009 whether the plan will permit direct rollovers of distributions of 2009 RMDs from the plan. Plan sponsors may choose among the following three options: Not permit direct rollovers of 2009 RMDs; Permit direct rollovers of 2009 RMDs; or Permit direct rollovers of 2009 RMDs if the 2009 RMD is part of a distribution that would otherwise be an eligible rollover distribution." (Haynes and Boone LLP)
[Guidance Overview] IRS Notice 2009-82 Provides Guidance on 2009 Required Minimum Distributions
Excerpt: "[With the 2009 RMD deadlines of 12/31/09 and 4/1/10] coming closer, you may be dealing with questions such as: Can I still pay a required minimum distribution if the participant would like to take it? Do participants have to opt out or do they opt in? Are 2009 RMD amounts eligible for a rollover? What about the plan document? IRS Notice 2009-82 ? Guidance on 2009 Required Minimum Distributions provides some additional guidance . . . ." (The One-Stop ESOP Blog)
[Guidance Overview] An IRS Notice Provides Relief for Some on Unwanted Required-Minimum Distributions Received
Excerpt: "Although the distribution requirements were waived for this year, some people were not aware of the tax law change and took distributions anyway. For those who realized the situation within 60 days, the answer was to roll the funds back to an individual retirement account or plan (providing they were eligible) and eliminate the tax bill. Unfortunately, many did not recognize this opportunity until the 60-day window had closed. Though they didn't want to keep the distributions, there apparently was no relief. But a new Internal Revenue Service ruling can help some taxpayers return the unwanted distributions. IRS Notice 2009-82, released Sept. 24, grants a rollover extension. Under the new guidelines, unwanted 2009 distributions already received may be eligible for rollover until Nov. 30 or 60 days after receipt, whichever is later." (Investment News; free registration required)
[Guidance Overview] Guidance on 2009 Required Minimum Distributions for Defined Contribution Retirement Plans (PDF)
4 pages. Excerpt: "Action Steps for Plan Sponsors[:] Although the Act provides an extended period of time to formally adopt plan amendments, practically speaking plan sponsors need to make immediate decisions and take action now. Specifically, plan sponsors should: No later than November 30, 2009, decide what approach will be taken with respect to the temporary suspension for 2009 RMDs and review existing RMD procedures. Until further IRS guidance is published, it appears that plan sponsorsmay have the following options . . . ." (Patterson BelknapWebb & Tyler LLP)
[Guidance Overview] A Technique for Dealing with Temporary Suspension of the Required Minimum Distribution Rules
Excerpt: "Below is our simplest advice for plan sponsors who did not suspend RMDs during 2009." (Chang Rutherford & Long)
[Guidance Overview] Sponsors of Defined Contribution Plans Must Determine Minimum Distribution Policies by Nov. 30, 2009
Excerpt: "The key decisions facing employers are: Whether to give plan participants the option to waive required minimum distributions from a defined contribution plan for 2009 Whether the defined contribution retirement plan will accept rollovers of amounts that were previously distributed, under the required minimum distribution rules, but for which distribution could have been waived Whether to inform participants who are first subject to the minimum required distribution rules in 2009 of their distribution options and rollover rights with respect to such distributions[.]" (Davis Wright Tremaine LLP)
[Official Guidance] IRS 'Employee Plans News' - October 2009 Special Edition (PDF)
2 pages; contains hypertext links to the new final funding regulations, and a notice of an upcoming October 28 webcast about the required minimum distribution rules and the new 402(f) notice. (Internal Revenue Service)
[Guidance Overview] Defined Benefit Plans Must Make Required Payments (PDF)
3 pages. Excerpt: "This information applies to sponsors of qualified defined benefit plans, including governmental plans and non-electing church plans. . . . All qualified plans must begin making payments, called Minimum Required Distributions (MRDs), by a participant's required beginning date (RBD). Most defined benefit plans begin making pension payments at a participant's RBD, rather than making just a MRD payment. However, MRD rules do apply and may be most notable when an employee earns additional benefits after reaching his RBD." (Prudential Retirement)
[Guidance Overview] IRS Guidance on 2009 Waivers of Required Minimum Distributions; DOL Says Summary Prospectus Satisfies ERISA Section 404(c) (PDF)
3 pages. Excerpt: "The IRS has issued Notice 2009-82 providing needed guidance for employers on the waiver of 2009 required minimum distributions (RMDs), including sample plan amendments. The guidance also provides plan operational relief for the period of January 1, 2009 through November 30, 2009, rollover relief until November 30, 2009, and Q&As that address miscellaneous issues related to the waiver of 2009 RMDs. Separately, the DOL issued Field Assistance Bulletin (FAB) 2009-3 providing that the prospectus requirement for ERISA Section 404(c) compliance can be satisfied by furnishing participants with a 'Summary Prospectus,' a new short-form prospectus approved by the Securities and Exchange Commission (SEC) earlier this year as part of its enhanced disclosure framework for mutual funds." (Buck Consultants)
[Guidance Overview] IRS Guidance on Rollovers of 2009 RMDs and Extensions of Certain Periods
Excerpt: "Notice 2009-82 addresses the rollover rules that apply to 2009 RMD amounts and answers other questions relating to the 2009 RMD waiver. It also includes: Transition relief for employer plans[ii] that are not operated in accordance with the plan's terms with respect to waived RMDs and certain related payments; Relief for rollover of waived RMDs and certain related payments, including an extension of the 60-day rollover period for some of these distributions; Answers the question of whether the RMD waiver also applies to a series of substantially equal periodic payments (SO-SEPP or SEPP)/72(t) payments, under which the 10% early distribution penalty is waived; and Explains when certain distribution related deadlines are extended and the duration of the extension." (RetirementDictionary!)
[Guidance Overview] Significance of November 30th in New RMD Waiver Rules
Excerpt: "In Notice 2009-82, the IRS provides transition relief and other guidance relating to the [Worker, Retiree, and Employer Recovery Act of 2008 ('WRERA')] waiver of required minimum distributions under Code ?401(a)(9). . . . November 30, 2009 figures prominently in the Notice, however, there is substantial confusion about the significance of that date. This Technical Update will discuss what distribution recipients and retirement plan sponsors must do by that date." (SunGard Relius)
[Guidance Overview] 2009 RMD Waivers: IRS's Clarification and Transitional Relief
Excerpt: "As adopted, the amendments must reflect the operation of the plan with respect to the 2009 RMD waiver (except for the period January 1 through November 30, as described above in the Transition Relief regarding Plan Compliance). The IRS provides two versions of a sample amendment: in one version the 2009 RMDs and Extended 2009 RMDs will be distributed unless the participant or beneficiary affirmatively elects otherwise, and in the other version the distributions will not be made unless the participant or beneficiary affirmatively elects otherwise. Direct rollovers of the 2009 RMDs and Extended 2009 RMDS are not offered under either ? although the sponsor can add provisions to provide a direct rollover of both, or only of the 2009 RMD." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS Guidance and Model Amendments for Suspending 2009 Minimum Required Distributions (PDF)
3 pages. Excerpt: "The Notice provides the following rollover relief:> Clarification that both distributions that would have been 2009 RMDs if not for the suspension (2009 RMDs) and certain installment payments that include 2009 RMDs (which the Notice refers to as 'Extended RMDs'), which could normally not be rolled over, are eligible for tax-free rollover, so long as the requirements applicable to rollover distributions are otherwise satisfied. An extension of the normal 60-day rollover period for 2009 RMDs and Extended RMDs, which will end no earlier than November 30, 2009." (Drinker Biddle Reath LLP)
[Guidance Overview] IRS Guidance on 2009 Required Minimum Distributions from Certain Retirement Plans (PDF)
2 pages. (Milliman)
How Does Retirement Planning Software Handle Post-Retirement Realities?
Excerpt: "This chapter explores retirement planning software that provides individuals and advisors the opportunity to perform a range of calculations to help them in retirement planning. We link results from surveys and research by the Society of Actuaries to show how the software handles post-retirement risks. We find that approaches to managing these risks are often not well-integrated." (via Pension Research Council)
[Official Guidance] Text of Sept. 25, 2009 Issue of IRS 'Employee Plan News'; Discusses 2010 Interest Rates for DB Plan Funding (PDF)
3 pages. Excerpt: "This Special Edition of Employee Plans News contains the following articles: [1] 'Upcoming Funding Regulations' states that the IRS and the Department of Treasury expect to issue final regulations in the near future that will cover measurement of assets and liabilities under ?430, and the application of benefit restrictions of ?436 for single-employer defined benefit plans. It also provides assistance to actuaries in issuing the adjusted funding target attainment percentage (AFTAP) for 2009. [2] 'Additional Guidance on 2009 Waiver of Required Minimum Distributions' explains key provisions of Notice 2009-82, issued on September 24, 2009, that provides guidance, transitional relief, sample plan amendments and answers to questions related to the waiver of 2009 required minimum distributions." (Internal Revenue Service)
[Guidance Overview] IRS Provides Guidance, Transition Relief, and Sample Amendments on 2009 RMD Waivers Under Recovery Act
Excerpt: "Sponsors may adopt the sample amendments, with appropriate modifications to conform to their plan's terms and administrative procedures, without concern that the amendment will adversely affect their plan's favorable opinion, advisory, or determination letter, and more importantly, without concern that a conflict between plan practices and plan operation in 2009 through November 30 will create a qualification issue. . . . Participants will benefit from the limited-time opportunity to roll over amounts they may have thought did not qualify." (Employee Benefits Institute of America)
[Guidance Overview] IRS's Two Sample Plan Amendments on the One-Year Waiver of Required Minimum Distribution
Excerpt: "According to Notice 2009-82, the amendments provide that participants and beneficiaries can choose to receive or not to receive the 2009 RMD and provide for the rollover of certain 2009 RMDs. The tax agency document said sponsors may need to tailor the sample amendment to their plan's particular terms and administration procedures and must adopt the amendment no later than the last day of the first plan year beginning on or after January 1, 2011 (January 1, 2012, for governmental plans)." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of IRS Notice 2009-82: Waiver of 2009 Minimum Distributions (PDF)
12 pages. Excerpt: "[This notice provides] transition relief through November 30, 2009 for a plan that is not operated in accordance with its terms with respect to waived required minimum distributions and certain related payments; sets out rollover relief with respect to waived required minimum distributions and certain related payments, including an extension of the 60-day rollover period to November 30, 2009 for certain of the distributions; and answers questions that have been raised regarding the waiver of 2009 required minimum distributions under WRERA. . . . [T]he notice also provides two sample plan amendments that give recipients a choice as to whether to receive waived required minimum distributions and certain related payments and that specify the application of the direct rollover rules to the distributions. The sample amendments can be used by plan sponsors that are uncertain as to the treatment under plan terms of waived required minimum distributions and certain related payments or that otherwise desire to give recipients a choice as to whether to receive such distributions." (Internal Revenue Service)
[Official Guidance] Final IRS Regs: Reasonable Good Faith Interpretation of Required Minimum Distribution Rules by Governmental Plans (PDF)
2 pages. Excerpt: "On July 10, 2008, the IRS and Treasury Department published [proposed regulations] . . . that would [amend] the regulations under sections 401(a)(9) and 403(b) of the Code. The IRS and Treasury Department received no comments on the proposed regulations and no public hearing was requested or held. Accordingly, the provisions of these final regulations are identical to the proposed regulations." (Internal Revenue Service)
[Official Guidance] Summer 2009 Edition of 'Retirement News for Employers' by Internal Revenue Service (PDF)
14 pages. Articles include '2009 RMDs from Defined Benefit Plans?', 'ABCs of Loans and Hardship Distributions', 'Correcting a Failure to Implement the Plan's Automatic Enrollment Provisions', 'SIMPLE IRA Plans: The 2-Year Rule on Early Distributions', 'New on the Web', and '7 Steps to Making a Hardship Distribution." (Internal Revenue Service)
Taking Advantage of the Required Minimum Distribution Holiday for IRAs
Excerpt: "The RMD holiday provides some flexibility: Forgoing the distribution is optional; it is not an all-or-nothing provision. The recipient may withdraw any amount, down to and including $0. Because a plan participant may take a distribution as late as the last day of the year, the participant is in a good position to take a distribution that optimizes tax savings. [For example, i]f a taxpayer has unusually high medical expenses, much of the income resulting from an IRA distribution may be shielded from tax. Excess medical expenses cannot be carried over to another tax year, so the deduction will be lost if not offset." (American Institute of Certified Public Accountants)
Proposed Changes to Required Minimum Distributions
Excerpt: "Legislation that would alter Required Minimum Distributions (RMD) from pension plans has been introduced in both the Senate and the House. H.R. 2021, led by Rep. John Boehner (R-OH), would extend the suspension of RMD requirements through 2012. It was referred to the House Committee on Health, Employment, Labor, and Pensions. Legislation from Sen. Olympia Snowe (R-ME) would grant a waiver of RMD payments through 2010. S. 157 was referred to the Committee on Finance. A bill to permit 2008 RMD payments to be repaid, H.R. 939 . . . ." (ICMA-RC)
House Bill Proposes Delay of Mandatory Pension Distributions
Excerpt: "U.S. House Representative F. James Sensenbrenner Jr. has introduced legislation (HR 2637) that, if passed, would delay the mandatory withdrawal of retirement savings through 2010 and raise the mandatory withdrawal age to 75. . . . Given the current market, late last year, Congress passed, and the President signed into law, the Worker, Retiree, and Employer Recovery Act into law, which suspended all RMDs from IRAs, 401(k)s and 403(b)s for 2009. However, the RMD rules will return next year in full force. This proposed bill would extend the suspension of RMDs through 2010. The legislation also permanently raises the mandatory withdrawal age to 75." (International Foundation of Employee Benefit Plans)
[Guidance Overview] Waiver of 2009 Required Minimum Distributions from Individual Account Plans
Excerpt: "There are many questions about the implementation of the waiver, but the only official guidance issued so far is IRS Notice 2009-9, which addresses a limited set of questions. This Compliance Alert summarizes the relevant portions of the available guidance with respect to DC plan participants and beneficiaries." (The Segal Group, Inc.)
[Guidance Overview] Suspension of Required Minimum Distributions in 2009
Excerpt: "If a participant or beneficiary makes a withdrawal in 2009 (that is not a required minimum distribution for 2008), the participant or beneficiary may be able to roll over the withdrawn amount into an IRA or other eligible retirement plan(s). Of course, the participant or beneficiary still must include in gross income any previously untaxed portion of the withdrawal that is not rolled over." (Troutman Sanders LLP)
[Guidance Overview] Required Minimum Distributions from Defined Contributions Plans Waived for 2009 (PDF)
Excerpt: "The 2009 RMD waiver under the Act does apply to individuals who may be eligible to postpone taking their 2009 RMD until April 1, 2010 (generally retired employees and IRA owners who attain age 70 ? in 2009). However, the Act does not waive any RMDs for 2010. Accordingly, an individual who attains age 70 ? in 2009 would still have to take an RMD for 2010 by December 31, 2010." (Snell & Wilmer LLP)
[Guidance Overview] Worker, Retiree, and Employer Recovery Act Provision of Relief for Defined Contribution Plans (PDF)
4 pages. Excerpt: "This new law applies to sponsors of and participants in qualified defined benefit and defined contribution plans, including multiemployer plans, governmental plans, and church plans that do not elect to be covered by ERISA ('non-electing church plans'). It also applies to ERISA and Non-ERISA 403(b) plans and governmental section 457(b) plans." (Prudential Retirement)
[Guidance Overview] Relief from Minimum Required Distribution from Retirement Plans and IRAs
Excerpt: "This advisory provides an overview of the tax relief [provided] for both employers and retirees, and includes steps they can take to ensure they make the best use of this opportunity." (Davis Wright Tremaine LLP)
[Guidance Overview] IRS Guidance on Reporting Required Minimum Distributions for 2009 (PDF)
1 page. Excerpt: "In Notice 2009-9, the Internal Revenue Service (IRS) provides guidance to financial institutions on the reporting requirements for required minimum distributions for 2009 after the enactment of the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA)." (Transamerica Center for Retirement Studies)
[Guidance Overview] 2008 Pension Legislation and Amendment Reminders
Excerpt: "All qualified retirement plan sponsors, regardless of their remedial amendment cycle, must continue to amend their plans timely to comply with IRS 'interim' amendment requirements. For example, many plans will have to be amended by the due date for the plan sponsor's 2008 tax return to reflect applicable changes in the maximum benefit and maximum contribution limits under Internal Revenue Code Section 415. Also, amendments to reflect applicable provisions of the Pension Protection Act generally must be executed by the last day of the 2009 plan year." (Bond, Schoeneck & King, PLLC)
[Guidance Overview] Summary of Recent Legislative Changes Affecting Individual Retirement Arrangements
Excerpt: "Recent developments have spawned a variety of targeted legislative changes to the rules that govern individual retirement arrangements ('IRAs'). Specifically, the Heroes Earnings Assistance and Relief Tax Act of 2008 ('HEART Act') enacted a number of changes designed to benefit those in military service, and the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 ('TEAMTRA') (which was enacted as part of the Fall 2008 economic stimulus package) and the Worker, Retiree, and Employer Recovery Act of 2008 ('WRERA') contained several provisions designed to assist those affected by the economic downturn." (K&L Gates LLP)
[Official Guidance] Text of IRS 'Retirement News for Employers' for Winter 2009 (PDF)
12 pages. Articles include: Did You Amend Your SIMPLE IRA Plan for EGTRRA? New Law Waives Required Minimum Distributions for 2009; Automatic Enrollment 401(k) Plans for Small Businesses; Fixing Common Plan Mistakes: Failure to Limit Contributions for a Participant; New Form 990 Requirements; Desk Side Chat With Monika Templeman - The Biggest Mistake. (Internal Revenue Service)
[Guidance Overview] Required Minimum Distribution Relief: A Nightmare for Employers
Excerpt: "In an effort to cushion the blow to retirement savings inflicted by the stock market crash, former President Bush signed the Worker, Retiree and Employer Recovery Act of 2008 ('WRERA' or the 'Act') on December 23, 2008. Although the Act provides some much-needed funding relief for sponsors of defined benefit plans, its attempt to help retirees under defined contribution plans will leave the sponsors of those plans reaching for a bottle of aspirin." (Spencer Fane Britt & Browne LLP)
[Guidance Overview] Suspension of Minimum Required Distributions for 2009 (PDF)
Excerpt: "The waiver of 2009 MRDs applies to IRAs, SEP-IRAs and SIMPLE IRAs. It also applies to 401(k) plans, profit-sharing plans, money purchase plans, 403(b) plans and other defined contribution plans to the extent permittedunder the terms of the plan (even if the plan requires distribution of an amount equal to the 2009 MRD, this distribution may be rolled over to an IRA or other qualified plan, permitting deferral of income tax on this distributed amount). The waiver of 2009 MRDs does not apply to defined benefit plans." (Drinker Biddle & Reath LLP)
[Guidance Overview] Defined Contribution Plans and 2009 Minimum Required Distributions
Excerpt: "The Worker, Retiree, and Employer Recovery Act of 2008 provides defined contribution plans with the opportunity to eliminate minimum required distributions for 2009. Plan sponsors will need to evaluate whether to implement this provision, particularly in light of the current economic crisis." (McGuireWoods LLP)
[Guidance Overview] The Worker, Retiree, and Employer Recovery Act of 2008: An Overview (PDF)
13 pages. Excerpt: "In December of 2008, Congress unanimously enacted the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) (P.L. 110-455), which makes several technical corrections to the Pension Protection Act of 2006 (P.L. 109-280) and contains provisions designed to help pension plans and plan participants weather the current economic downturn. This report highlights the provisions of WRERA relating to the economic crisis, such as the temporary waiver of required minimum distributions and provisions that temporarily relax certain pension plan funding requirements. This report also discusses certain technical corrections to the Pension Protection Act made by WRERA, and certain other notable provisions of the Act affecting retirement plans and benefits." (Congressional Research Service)
[Opinion] American Benefits Council Request for Guidance on Minimum Required Distribution Waivers (PDF)
6 pages. Excerpt: "The provision . . . was signed into law on December 23, 2008 and the extremely short time frame before the legislation's January 1, 2009 effective date has raised issues that could interfere with the legislative purpose underlying the relief. In this regard, many MRD payments were scheduled for early 2009 and there simply has not been enough lead time for plans to offer participants an opportunity to defer distributions. Moreover, there are a number of technical issues that arise which may have the unintended consequence of making it difficult for participants to exercise self-help remedies by rolling a plan distribution to an IRA or other eligible retirement plan. For these reasons, the Council is writing to request that the U.S. Treasury Department and the Internal Revenue Service (hereinafter collectively 'Treasury/Service') facilitate the purpose behind the legislation by addressing these issues in published guidance." (American Benefits Council)
Tax Issues Can Complicate the Decisions of Retirees, Financial Planners Say
Excerpt: "'Little moves they make now can make a big difference later on,' said Gary Schatsky, a fee-only financial planner in New York. The following advice from retirement planning experts is geared toward current retirees, though some of it will be useful for investors of all ages." (The New York Times; free registration required)
The Confusion Over Required Withdrawals from Retirement Accounts
Excerpt: "For 2009 only, there will not be the usual required minimum distributions from retirement plans such as 401(k)s, Roth 401(k)s, 403(b)s and certain 457(b)s. The distribution rules also apply to traditional individual retirement arrangements and accounts and IRA-based plans such as Simple IRAs and SEPs (simplified employee pension plans), which provide employers with an easy method to make contributions toward their employees' retirement or the self-employed an easy way to contribute to their own." (The Washington Post; free registration required)
[Opinion] Letters to the Editor on 'From Here to Retirement,' NYT Editorial of January 26
Some of the letters are from people prominent in the retirement industry. (The New York Times; free registration required)
[Opinion] Groom Comments on 2009 Suspension of Required Minimum Distribution Rules (PDF)
5 pages. Excerpt: "Groom Law Group submitted the attached letter to the IRS to request additional clarifying guidance with respect to the 2009 suspension of the required minimum distribution rules for defined contribution plans described in Code section 401(a), 403(b) plans, governmental 457(b) plans, and IRAs provided under the Worker, Retiree, and Employer Recovery Act of 2008." (Groom Law Group)
[Guidance Overview] Pension Funding Relief and Technical Corrections to PPA
Excerpt: "The Worker, Retiree and Employer Recovery Act (WRERA), signed into law on Dec. 23, 2008, provides some funding relief to defined benefit (DB) sponsors affected by recent market declines, as well as temporarily waiving the minimum distribution rules for seniors. The act also makes permanent technical corrections to the Pension Protection Act of 2006 (PPA). [This article includes charts of both temporary and key permanent provisions.]" (Watson Wyatt Worldwide)
[Guidance Overview] Suspension of Minimum Required Distributions for 2009 (PDF)
2 pages. Excerpt: "While the required distributions otherwise due for the 2009 calendar year are waived under the Act, plan provisions may require that these distributions still be paid. Therefore, plan sponsors may want to amend their plans so that these distributions are not paid. The Act specifies that it is permissible for a plan not to pay distributions that the plan document otherwise requires to be paid as required minimum distributions for the 2009 calendar year so long as the plan is amended to conform to its operation (of not paying the distributions) no later than the last day of the plan year commencing on or after January 1, 2011." (Dow Lohnes PLLC)
[Opinion] ASPPA Comments on the Suspension of Required Minimum Distributions in 2009 (PDF)
5 pages. Excerpt: "The American Society of Pension Professionals & Actuaries (ASPPA) appreciates this opportunity to comment on the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA). These comments relate to WRERA ?201 which suspends the application of Internal Revenue Code (IRC) ?401(a)(9) in 2009 for certain retirement plans." (American Society of Pension Professionals & Actuaries)
[Guidance Overview] IRS Guidance to Financial Institutions on Reporting Rules Applicable to RMDs for 2009
Excerpt: "The IRS has issued guidance to financial institutions on the reporting rules applicable to required minimum distributions (RMDs) for 2009, reflecting the Worker, Retiree, and Employer Recovery Act of 2008 (P.L. 110-458). The Act waives any RMDs for 2009 for individual account plans, such as 401(k) plans and 403(b) plans, and for IRAs. This means that most participants and beneficiaries otherwise required to take minimum distributions from these types of plans are not required to withdraw any amount in 2009." (Wolters Kluwer)
[Guidance Overview] Pension Bill Offers Some Relief in Light of Market Turmoil; Technical Corrections Enacted
Excerpt: "On December 23, 2008, President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008 (the Act). In response to the recent market volatility, the Act provides some relief for companies that contribute to single-employer and multiemployer defined benefit plans, as well as for certain individual taxpayers. It also makes technical corrections to several provisions found in the Pension Protection Act of 2006 (PPA). In order to provide highlights of the Act, we are issuing this high-level summary now . . . ." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] Responding to Employee Benefits Provisions of the Worker, Retiree and Employer Recovery Act of 2008
Excerpt: "The recently passed Worker, Retiree and Employer Recovery Act of 2008 (the 'Act') contains important changes for qualified plans. These changes are intended to provide relief to plan sponsors and participants for plan funding shortfalls and account reductions caused by the economic downturn. This Benefits Alert describes some of the changes under the Act and what actions, if any, should be taken." (Holland & Hart LLP)
[Guidance Overview] The Worker, Retiree, and Employer Recovery Act of 2008: Limited Relief and Technical Guidance for Qualified Retirement Plans
Excerpt: "The Worker, Retiree, and Employer Recovery Act of 2008 makes a number of technical corrections which need be to considered as employers prepare plans for PPA compliance. . . . As employers prepare plan amendments for PPA compliance during 2009, these changes need to be considered. The [target page] is a summary of the key provisions of the Act." (McDermott Will & Emery)
[Guidance Overview] 2009 RMD Rule Changes: A Follow-Up on Specific Issues
Excerpt: "The changes in the required minimum distribution ('RMD') rules for 2009 that are part of the Worker, Retiree, and Employer Recovery Act of 2008 ('WRERA') continue to receive substantial discussion. . . . This Technical Update addresses some issues of continuing interest regarding the interpretation of the new law, as well as informal discussion with IRS National Office personnel." (SunGard)
[Guidance Overview] Milliman's Monthly Benefits News and Developments. Jan. 2009 Edition (PDF)
2 page list of principal employee benefits news and developments in December, 2008. (Milliman)
Edward Zelinsky: Abolish Minimum Distribution Requirements
Excerpt: "Edward Zelinsky (Cardozo) suggests, in the OUP Blog of Oxford University Press, that Congress should immediately abolish the minimum required distribution which the IRS imposes on retirement savings accounts. The MRD rules provide that individuals over 70.5 years old must annually receive and pay taxes on minimum payments from their retirement plans." (Workplace Prof Blog)
[Guidance Overview] A Q&A on 2009 Required Minimum Distribution Rule Changes
Excerpt: "The purpose of this Q&A is to explain the effect of the law change to the required minimum distribution ('RMD') rules, passed as part of the Worker, Retiree, and Employer Recovery Act of 2008 ('WRERA'). In particular, this Q&A discusses issues employers will face in administering plans that are making RMDs." (SunGard)
[Guidance Overview] IRS Special Edition on New Law Affecting Required Minimum Distributions for 2009 (PDF)
2 pages. Excerpt: "If a beneficiary is receiving distributions over a 5-year period, he or she can now waive the distribution for 2009, effectively taking distributions over a 6-year rather than a 5-year period." (Internal Revenue Service)
[Official Guidance] Text of IRS Notice 2009-09: Reporting by Financial Institutions of Required Minimum Distributions for 2009 (PDF)
Excerpt: "Issuers of the 2008 Form 5498, IRA Contribution Information, should not put a check in Box 11. However, in recognition of the short amount of time to make programming changes, if a financial institution issues a 2008 Form 5498 with a check in Box 11, the IRS will not consider such form issued incorrectly solely because of the check in Box 11, provided the IRA owner is notified by the financial institution no later than March 31, 2009, that no RMD is required for 2009." (Internal Revenue Service)
[Guidance Overview] Worker, Retiree, and Employer Recovery Act of 2008
Excerpt: "This newsletter provides a summary of the most important provisions of the Recovery Act." (Blank Rome)
[Guidance Overview] FAQ Sheet for Plan Participants: Changes in the Required Minimum Distribution Rules for 2009 (PDF)
Excerpt: "A new law, the Worker, Retiree and Employer Recovery Act of 2008, suspends the minimum distribution requirements applicable to employer sponsored retirement plans (401(k), 401(a), 457, 403(b), IRAs) for the 2009 tax year. As a result of this change, participants over the age of 70? who would typically need to receive a required minimum distribution (RMD) for 2009 are not required to take payment from their accounts during 2009." (ICMA-RC)
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