|
Required Minimum Distributions Suspended for 2009
Ivy Funds
February 2, 2008
Required minimum distributions from Individual Retirement
Accounts (IRAs) and certain other retirement accounts have been suspended
for 2009, freeing retirees this year from the need to withdraw funds from
retirement accounts that may have lost value during the market decline over
2008.
The minimum distribution suspension applies to IRAs and
employer-sponsored qualified retirement plans. This includes the following
types of accounts:
-
Traditional IRAs
-
Rollover IRAs
-
SEP IRAs
-
Inherited IRAs
-
Inherited Roth IRAs
-
401(k)
-
403(b)
If you are over 70 ½ or will turn 70 ½ during 2009, you
will not have to take a distribution from these accounts, as was previously
required.
Due to extraordinary economic conditions, former President
Bush provided relief for 2009 by signing the Worker, Retiree and Employer
Recovery Act of 2008, which waives the minimum distribution requirement for
2009 only.
If you are the beneficiary of a retirement account that is
currently taking distributions from that account, you can skip your 2009
withdrawal. Some inherited IRA accounts require that all distributions be
taken within a five-year period. Under the new act, the five-year period
will be determined without counting calendar year 2009.
This change does not impact 2008 required minimum
distributions. If you turned 70 ½ during 2008 and had deferred your first
required withdrawal, that must still be taken by April 1, 2009.
If you have questions, or would like further information
about Required Minimum Distributions or retirement plans, please contact
your financial advisor.
Ivy Funds Distributor, Inc.
Member FINRA, SIPC (1/09)
To learn more about Ivy
Funds or other mutual fund companies, visit Fund
Companies. For particular fund information, visit Fund
Selector.
|
