Can I waive my required minimum distributions for tax-year 2009?
New legislation now allows individuals who are subject to required minimum distribution (RMD) rules to waive RMDs from their retirement plan or Individual Retirement Accounts (IRAs) for 2009 without incurring an IRS penalty.
The law is intended to provide relief to people concerned about the potential impact of ongoing financial market volatility on their retirement accounts. The relief treats equally individuals who usually take the required distribution amount monthly and those who take a lump sum amount at the end of the year.
If you expect to receive a required minimum distribution for 2009 that you would like to suspend, you will need to contact Symetra at 1-800-796-3872 to request a voluntary suspension.
Are suspensions available for beneficiaries, or are they limited to the original contract owner?
Contract owners or their beneficiaries who are required to receive a required minimum distribution for 2009 may voluntarily request that the distribution be suspended.
What if I receive a minimum distribution for 2009 that I did not want to receive?
You may return any minimum distributions received for 2009, provided you do so within 60 days of when the distribution was received.
If I suspend my RMD, will I still be allowed to make withdrawals?
Yes. Suspending the RMD does not block access to your funds or preclude you from making withdrawals which are ordinarily allowed in your retirement account.
What should I do if I do NOT want to suspend distributions?
You do not need to take any action. If you receive minimum distributions you will continue to receive them unless you notify Symetra that you would like the payment to be suspended.
If I suspend minimum distributions for 2009, will I face any additional taxation or penalty when I take the distribution for subsequent years?
No. The Act includes a temporary waiver of the IRC section 401(a)(9)’s required minimum distribution rules for 2009. It is not considered a deferral.
Can I wait until the end of tax-year 2009 to decide whether to suspend an RMD?
It depends on when your minimum distribution normally is sent. The law gives you 60 days from the date you receive a minimum distribution to return the check, re-contribute the distribution, or roll it over to a qualified retirement account without penalty.
Will the 2010 RMDs be calculated differently if I suspend my 2009 RMD?
No. The 2010 RMDs will be calculated using the balance as of December 31, 2009.
If I turned age 70½ in 2008 and deferred my RMD until April 1, 2009, can I suspend the 2008 RMD for the rest of 2009?
No. If you turned age 70½ during 2008, you have until April 1, 2009 to take your 2008 RMD. This new law does not affect or change that requirement. You must still satisfy your RMD requirement for 2008.
