No Required Minimum Distributions for 2009

Under the tax law, individuals must start taking distributions from their retirement plans (such as IRAs and 401(k) plans) by the year they turn 71 1/2. The 2008 Recovery Act (signed into law on December 23) suspends these rules for 2009. So individuals age 71 1/2 and older are not required to take retirement distributions in 2009. This allows taxpayers with other assets for living expenses to leave funds in retirement accounts, and hopefully see their investments recover. The IRS has answers to frequently asked questions about these rules at: http://www.irs.gov/retirement/article/0,,id=96989,00.html.