Sat 31 Jan, 2009 03:48 pm
Investors are required to take RMDs from your tax deferred retirement accounts annually once you turn 70.5, but congress enacted a law that waives RMDs requirement for 2009. It applies to IRAs, 401ks, and other defined contribution plans, and includes inherited retirement plan accounts. Get the real dope (detail) from the IRS if you have any questions.
RMDs never made sense to me. I don't want the IRS to have jurisdiction over how much I make, when I spend it and I sure as hell hate them guessing at how long I'm going to live!
Nick, This is a different animal; we didn't have to pay taxes when we put our earnings into an IRA or 401k (before income tax contributions), and the government now wants their money. You know that old saw about death and taxes, don't you?