Required Minimum Distributions: More Guidance

As discussed in my post dated January 29, 2009, no required minimum distributions will be required in 2009 for most individuals older than 70 1/2. Minimum required distributions will resume again in 2010.

The waiver of distributions for 2009 applies to recipients from IRA's, 401(k)s and 403(b)s. However, the exception for no 2009 distributions does not apply to distributions from defined benefit plans, which must take required minimum distributions in 2009.

Beneficiaries of inherited IRAs who are subject to the 5 year rule are also exempt from required distributions in 2009, so they will get 6 years (this applies primarily to non-spouses who receive inherited retirement funds).