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Any tax information or written tax advice contained herein (including any attachments) is not intended to be and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. (The foregoing legend has been affixed pursuant to the U.S. Treasury Regulations governing tax practice.)
The matters highlighted on this website are presented in general terms and cannot be applied without consideration of all circumstances. NSBN will provide additional details upon request and will be pleased to discuss with our clients or their attorneys the possible effects of these matters in specific situations.
Email Alert
IRS Extends Time for 2009 Required Minimum Distribution Rollovers
November 16, 2009
Individuals who have reached age 70½ must generally begin to take required minimum distributions (RMD) from their IRAs or defined contribution retirement plans, including 401(k), 403(b), and 457 plans. The withdrawals must begin by April 1 of the year following the year in which an individual attains age 70½. Amounts not distributed are subject to an excise tax of 50% and the recipient is liable for federal income tax.
However, recent federal tax law changes have suspended RMDs for 2009. Therefore, individuals who took an RMD from their IRA or as a retirement plan participant for 2009, can rollover that amount even if 60 days have passed since the distribution. Individuals generally have until the later of November 30, 2009, or 60 days after having received a distribution to roll over the amount.
If you have any questions about this matter or would like additional information, please do not hesitate to contact us.
