Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Retirement Investing

401(k) Withdrawal Penalty Suspended For 2009

Your article was successfully shared with the contacts you provided.

President George W. Bush has signed legislation to suspend temporarily a tax penalty for seniors who do not take a minimum withdrawal from their retirement accounts in 2009, including 401(k) accounts.

The Worker, Retiree and Employer Recovery Act (H.R. 7327) suspends for 1 year an IRS requirement that account holders of 401(k)-style plans must withdraw a minimum amount of money every year after they reach 70- 1/2 years old. The suspension is intended to assure that seniors are not forced to take money out of their accounts while asset values are depressed due to the economic downturn. This suspension will be available to everyone, regardless of their retirement account balances.

The bill was introduced by Representatives George Miller (D-Calif.), Charles B. Rangel (D-N.Y.), Howard P. “Buck” McKeon (R-Calif.) and Jim McCrery (R-La.).


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.