Wednesday, November 04, 2009
Seniors can defer one IRA withdrawal at or after age 70-1/2, to help "recover" 2008 losses
Here’s an important tip from USA Today, “Your Money”, Tuesday Nov. 3, in a story by Sandra Block. “You can skip IRA withdrawals this year – or roll one back.” The link is here.
Late last year, Congress waived the minimum IRA withdrawal requirement for those who are 70-1/2 or older, in order to give seniors a chance to recover some value lost in the 2008 financial collapse. If you did take a withdrawal , you may be able to redeposit one withdrawal within a certain time period, as explained in the article. This forbearance does not apply to inherited IRA’s.
The basic IRS publication on IRA’s is here.
There are more details about the mandatory withdrawal and temporary waiver in Publication 590 (PDF), here,p. 3, and then Chapter 1 on p 34.