The Senate yesterday suspended minimum withdrawal requirements on retirement plans, MarketWatch reports. The relief applies for one year to distributions that would have to be taken in 2009.

“By making minimum withdrawals from retirement savings accounts optional rather than mandatory for next year, older Americans are poised to hold on to more of their diminished nest eggs,” said David Certner, AARP legislative policy director, in a statement. “By freezing the withdrawals for next year, every older American — who was forced to make a choice between taking a withdrawal that was calculated based on a much higher value in their retirement account or face a high tax penalty — will be eligible for this financial relief.”

The bill passed in the House on Wednesday before being approved by the Senate. Approval from President Bush is pending, according to MarketWatch; a White House spokesperson told the Web site the current administration has concerns about measures to reduce funding for worker pensions.