The Latest on Required Minimum Distributions
Thursday, December 18, 2008No break for seniors this year on rules requiring them to take money out of their IRAs and 401ks. The Treasury and IRS said today they will not change those required distributions for 2008.
The decision is a huge disappointment for many Americans age 70-1/2 and over who've seen their retirement funds torched in the market meltdown.
They must take out money based on the value of their accounts at the beginning not the end of this year. Our tax guru Kevin McCormally of Kiplinger's says now that the decision has been made you need to act quickly!
He suggests contacting your IRA or 401K custodian tomorrow morning. There's a 50 percent penalty if you don't take the Required Minimum Distribution and it has to be done by close of business December 31st.
