Friday, December 26, 2008
Double whammy if you're 70 and a half
President Bush has signed legislation that will temporarily suspend the penalty for seniors who fail to take the required minimum distribution from IRA and employer retirement accounts in 2009, but you’ll still need to do the required distribution for 2008--and that’s based on your fund balance at the end of 2007. Not good, folks, not good. Imagine this (and I know you can with little trouble). Congress just had to rush through that horrendous September bailout which was supposed to create more credit from banks so they could help business. At least, that’s the way we were told it would work. But so far, all that’s happened is a run on the government for more bailouts, from the auto industry to universities to home builders. And the lending institutions have continued to give their year end bonuses and perks. But those mental midgets we elected just couldn’t figure out a way to rush through a plan to change the wording in the 2008 requirement--the year a lot of us lost 40-50% of the value of our accounts. How tough would it have been to change 70.5 to 71.5 or 72.5? I'm not sure this is the best source, but I'm going with it now because it doesn't require registration. Full text of HR 7327 here, but use your "find" command (control F) with the word "retirement" to get to the correct section.