Congress Approves Measure to Ease Pension, IRA Rules
Congress approved legislation, which, if signed into law by the President, will temporarily suspend an excise tax which is assessed on seniors who fail to take a required minimum distribution (RMD) from their retirement accounts including IRAs, 401(k)s, and 403(b)s. The bill will waive the penalty on RMD for 2009 only.

Under the Worker, Retiree and Employer Recovery Act (H.R. 7327), all taxpayers, those who usually take the required minimum distribution amount monthly and those who take a lump sum amount at the end of the year, would have equal treatment. Under current law, individuals who have reached age 70.5 must take an annual required minimum amount from their retirement plan or IRA. Failure to take the distribution subjects the individual to a 50-percent excise tax on the amount that should have been withdrawn.

If you would like to learn more about the Worker, Retiree and Employer Recovery Act , please contact our office at (239) 254-0706.