For those waiting to take their Require Minimum Distributions (“RMDs”) for 2008, hoping that relief might come from the IRS, please note that the latest news is that the Treasury has declined to provide such relief (2009 RMDs have received relief under WRERA). From the Washington Post: IRS, Treasury Keep Rule Requiring Retirees to Withdraw Their Savings:
The Treasury Department and Internal Revenue Service decided not to change a rule that requires seniors to withdraw money from their individual retirement accounts and 401(k) plans by the end of the year. . .We are disappointed that the Treasury Department declined to act to help those seniors forced to take withdrawals from their depleted retirement accounts,” said Aaron Albright, press secretary for the House Education and Labor Committee. “Congress acted to provide relief for seniors in 2009 with the understanding that Treasury was actively working on a solution for this tax year.”
In a letter to Congress, Kevin I. Fromer, the Treasury’s assistant secretary for legislative affairs, said “the scope of Treasury’s ability to make administrative changes has constraints. Thus, any steps Treasury could take would be substantially more limited than the relief enacted by Congress and could not be made available uniformly to all individuals subject to required minimum distributions.”
He also wrote that making any changes this year would be “complicated and confusing for individuals and plan sponsors.”
Many seniors have already taken their required minimum distribution for this year. One of the main concerns with suspending the rule was the difficulty in determining how to deal with those who had already complied with it.
Update: Access the text of the Treasury’s letter to Congress indicating the Treasury will not provide any relief for 2008 RMD’s here.