Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has modified the rules for financial institutions reporting required minimum distributions from retirement plans in light of the waiver on minimum distributions during 2009 that was included in the Worker, Retiree, and Employer Recovery Act of 2008 (P.L. 110-458). Under the recently enacted legislation, required minimum distributions from individual retirement accounts (IRAs) and retirement plans that maintain participant benefits in individual accounts are waived for 2009. Issuers of the 2008 Form 5498, IRA Contribution Information, should not put a check in Box 11 of the form. However, if a financial institution issues a 2008 Form 5498 with a check in Box 11, the IRS will not consider the form as being issued incorrectly if the financial institution notifies the individual retirement account owner by March 31, 2009, that no required minimum distribution is required for 2009. Further, financial institutions need not send the required minimum distribution information required under Notice 2002-27, 2002-1 CB 814, to IRA owners for 2009. If the institution sends a separate required minimum distribution statement to an IRA owner, the financial institution must show that the required minimum distribution for 2009 is zero or include a statement showing what the required minimum distribution would have been if the 2009 waiver hadn't occurred accompanied by an explanation of the waiver for 2009. Notice 2002-27, 2002-1 CB 814, is modified.

Notice 2009-9,
2009FED ¶46,240

Other References:

 
Code Sec. 401

  CCH Reference - 2009FED ¶17,726.25

  CCH Reference - 2009FED ¶17,726.26

 
Code Sec. 403

  CCH Reference - 2009FED ¶18,282.11

 
Code Sec. 408

  CCH Reference - 2009FED ¶18,922.0759

  CCH Reference - 2009FED ¶18,922.1066

  Tax Research Consultant

  CCH Reference - TRC PLANIND: 15,054.10

  CCH Reference - TRC PLANRET: 12,052.30

  CCH Reference - TRC RETIRE: 42,750

  CCH Reference - TRC RETIRE: 66,456

  CCH Reference - TRC RETIRE: 66,466