From Cynthia Scott of OMC Financial Services:
Congressional Impact on 401Ks, IRAs and other retirement plans
**The Worker, Retiree and Employer Recovery Act of 2008 was signed on December 23rd and will grant a temporary waiver of the RMD for 2009 only. Retirees must be over 70 ½ in 2009 to be eligible for the waiver.
**50% excise tax is waived on all 2009 RMD underpayments
**There is also special provision for a beneficiary of a 401k, IRA or other retirement plan of a deceased account holder which permits them to waive their distributions in 2009. Individuals in these circumstances should contact their financial advisor to see if they qualify.
**Other changes are proposed but not legislated at this time such as eliminating the penalty for withdrawals prior to age 59 ½.
