Suspension of Required Minimum Distributions for Retirement Accounts

Tax laws generally require individuals with retirement accounts to make required withdrawals based on the size of their account and their age every year after 70 ½ . The new law suspends the required minimum distribution for retirement accounts in 2009. This waiver, available to everyone regardless of their total retirement account balances, applies to all defined-contribution plans, including 401(k), 403(b), 457(b), and IRA accounts. Suspending the mandatory withdrawal allows retirees to keep the money in their account if they choose, and possibly recover some losses. The suspension for 2009 also applies to beneficiaries of retirement plan accounts and IRA owners.

If you any questions, please contact a Winter, Kloman, Moter & Repp, S.C. representative. Contact the Brookfield office at 262-797-9050; the Oconomowoc office at 262-567-6540; or the Watertown office at 920-261-6767.