Generations of Trust

REQUIRED MINIMUM DISTRIBUTIONS FROM IRA FOR 2009 TAX YEAR.
By: Lawrence M. Fuchs, Esq.

If you are 70½ years or older, up until 2009 you have been required to withdraw the Required Minimum Distribution (RMD) from your traditional IRA by the end of each tax year.

However, on December 23, 2008, a one-year moratorium on the RMD was enacted for the 2009 Tax Year. Hence, for the year 2009, failure to take the RMD will not be subject to any penalties.

In the event that you were required to take an RMD in 2008, but deferred it until 2009, then you must still take that distribution on or before April 1, 2009.

In the event you do take your RMD, and you do not use it to live on, you might consider using it to:

(1) Invest for your grandchildren's higher education, Section 529 College Savings Plan;
(2) For your heirs as part of your legacy planning;
(3) For yourself, entertainment, recreation; or
(4) Charitable giving

Zager Fuchs provides legal counsel and representation for businesses and individuals in Monmouth County and Ocean County and Middlesex. We serve communities such as Little Silver, Oceanport, Long Branch, Eatontown, Rumson, Lincroft, Middletown, Monmouth Beach, Sea Bright, Matawan, Shrewsbury, Hazlet, Red Bank, Ocean, Aberdeen, Toms River, Freehold, Jackson, Lakewood, Asbury Park, Beach Haven, Spring Lake, Howell, East Brunswick, Old Bridge, Belmar and Deal, New Jersey, Fair Haven, Tinton Falls, Atlantic Highlands, Holmdel, Wall, Manasquan, Elberon, Bradley Beach, Spring Lake.