by 
The Curious Bag
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On Dec. 23, 2008, President George W. Bush signed H.R. 7327, which suspended RMD laws for 2009. This relief was meant to aid retirement-aged taxpayers. These laws are set to go back into effect in 2010.
RMD
RMD is an acronym for Required Minimum Distribution. It is the minimum amount retirement plan account holders must withdraw every year after age 70 1/2, according to FiveCentNickel.com.
Tax Penalties
A 50 percent excise tax is applied to required distributions that are not distributed, according to ING Direct. No such penalties will be assessed in 2009.
Distribution
Your ability to take distributions from your retirement account has not changed, according to ING. These withdrawals are simply not required in 2009.
Relief Period
This relief applies only to payments due in 2009. Payments deferred from the 2008 tax year still need to be paid in 2009.
Considerations
Taxpayers who turn 70 1/2 need not take an RMD until Dec. 31, 2010. The typical 20 percent withholding on partial RMDs will not be taken on 2009 distributions.
Source:
Ing USA: Q & A on Temporary RMD Relief
Fivecentnickel.com: What is a Required Minimum Distribution?
Benefitslink.com: 2009 RMD Relief
More Information:
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