Important Information for Those Over 70 ½ Years of Age

By
Real Estate Mortgage Broker with Aurora Financial Group

Important Information for Those Over 70 ½ Years of Age Who Are Eligible to Take Required Minimum Distributions (RMDs) From Their IRA and/or Qualified Retirement Plan

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The Worker Retiree and Employer Recovery Act (WRERA) signed into law by former President Bush on December 23, 2008 contains, among other stipulations, a provision for the suspension of Required Minimum Distributions (RMDs) for tax year 2009.

Some important provisions of this Act are:

•·         RMDs are suspended for IRA owners and qualified retirement plan participants (401(k), 403(b), 457 plans, etc.)

•·         RMDs are suspended for IRA and qualified retirement plan beneficiaries including Roth IRA beneficiaries.

•·         The law change does not change your required beginning date. For example, if you turn 70-1/2 in 2009, your required beginning date is April 1, 2010, even though you are not required to take your first year RMD because of the law change.

•·         This law change has no effect on 2008 RMDs. If 2008 is your first RMD year, you still must take your 2008 RMD by April 1, 2009.

•·         This law has no effect on Qualified Charitable Distributions (QCDs) for 2009.

•·         If you need your RMD or any part of it, you may take it without penalty. Of course, it will be added to your taxable income in the year of the distribution.

I strongly suggest if you are subject to RMDs for 2009 and wish to suspend your withdrawal or ensure you receive it that you proactively contact your IRA custodian or 401(k) plan administrator to inquire as to what action, if any, you must take.

Although this new law may sound somewhat straightforward, any change in the tax law, especially when it deals with retirement plan distributions, is complicated and filled with potential tax traps. As such, I am available to you, a family member, a friend, or coworker to offer guidance to avoid a financial mistake. Kindly contact me if I may be of assistance.

Very truly yours,

Leo K. Casper, CPA/PFS

Posted by

Carol and Richard DeGrace                               


Vice Presidents


NMLS # 149276, 149277

Aurora Financial Group Licensed Mortgage Banker NJ/PA Dept of Banking


and Insurance NMLS# 7096


Aurora Financial Group

 

9 Eves Drive


Suite 190


Marlton, NJ 08053

Phone: 856.596.6200, Ext 109


Carol cell: 609.209.3800

 

Rich cell: 609.209.3700


Efax: 856.355.4757

 

 

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Topic:
Lending / Financial
Tags:
retirement savings plans
401k
ira
ira distributions

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Richard DeGrace

NMLS # 149277, Camden County, NJ Loan Officer
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Additional Information

Aurora Financial Group, South Jersey's largest independent mortgage banker. More than 20,000 area consumers have received over $2.1 billion from Aurora over the past two decades. We offer a wide variety of mortgage products, including specialized programs targeted for first-time homebuyers and retirees/seniors. Since it's founding, Aurora has been at the forefront of innovative and addordable residential financing. Some of Aurora's notable achievements are: •Largest originator in southern NJ of government backed loans (FHA, VA, RHS), 1986 to present •Largest participant in NJ Housing & Mortgage Finance Agency (NJHMFA) programs, 1990 to present •Largest originator or Rural Housing Service guaranteed rural housing loans, 1992 to present •A leading providor of renovation and rehab loans using Fannie Mae's "Home-Style", FHA 203k, and NJHMFA's mixed use "upstairs-downstown" and home remodeling "HomePlus" programs •Seller-Servicer for Fannie Mae, NJHMFA, and numerous banks, pensions funds, and private investors. "Aurora Financial Group Inc. (NMLS # 7096) is a licensed Mortgage Banker - States of NJ & PA Departments of Banking."