Retirement plan & IRA beneficiaries over over the age of 70-1/2 face minimum distributions rules. While there has been a lot of talk about suspending the rule for 2008, Congress decided it would be too complication to implement given that many taxpayers have already withdrawn funds in 2008. So Congress passed a waiver of the minimum distribution rule for 2009 but not for 2008. President Bush is expected to quickly sign it.
The change does not apply to any required minimum distribution for 2008 permitted to be made in 2009 by reason of an individual's required beginning date being April 1, 2009.
The Internal Revenue Service is still looking at possible changes to the penalty computation rules for 2008. Kind of late, don't you think? [[[ update... the IRS decided NOT to make any changes ]]]
Form 5329 is used for computing penalties on IRAs and pensions.
Penalty rules explained
Monday, December 15, 2008
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