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No 'required minimum distributions' in 2009

While you were otherwise occupied during holiday season, Congress was passing a potential tax break for retirees (Pres. Bush signed the bill on Dec. 23). The break applies applies to IRA, 401(k) and 403(b) owners who are at least 70½.

Lawmakers temporarily suspended (for tax year 2009) the "required minimum distribution."

Retirement-plan rules generally mandate minimum annual distributions once the account owner reaches 70½, even if the owner doesn't need the money right away and would rather leave it invested.

Congress decided to suspend that requirement because so many retirement accounts have been hit hard by the market downturn. The idea is to allow time for account values to recover before forcing retirees to take their money out.

Of course, since this is a tax-related matter, it's all bit more complicated than it would seem at first. Details here from the Wall Street Journal.

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