Posted on 26 October 2009
By Mark Miller
A recent IRS ruling opens up a new window for investors to suspend their required minimum distributions (RMDs) from retirement plans and IRAs this year.
RMDs were suspended for 2009 under legislation intended to provide relief to investors battered by the market crash. The idea was not to force investors to pull funds while holdings were depressed, or to pay the associated tax bill generated by the distributions.
However, some investors undoubtedly missed the opportunity–in some cases when RMDs were automatically taken from accounts. The IRS rules gave investors 60 days from the point an RMD was taken to reverse the payment.
But the IRS has issued a revised rule that gives investors until November 30th to make corrections. Ed Slott, the IRA guru and author of the influential IRA Advisor, has details on how to reverse an RMD.