Worker, Retiree, and Employer Recovery Act of 2008

[Brad Imsdahl]

Coverage of the new law is now posted on our updates page. Taxpayers required to take minimum distributions from IRAs, 401(k) plans, and other qualified plans need to be informed about this new law. The password to get to the update is found on the last page of the index of the 2008 edition books.

http://www.thetaxbook.com/view_update.asp?1=121

[RLymanC]

Brad

can't find the RMD law,,,is it effective 2008 or 2009?
I found it 2009

[Corduroy Frog]

Web CD

Maybe I am missing something...

All recent previous updates have had a link to update the Web CD. I haven't found such a link on this update.

I suspect one of the following is true:

a) A link to update the WebCD exists, and I simply can't find it.
b) The new update does not affect the 2007 law, and hence no need
to update the 2007 WebCD. When TMI sends out the 2008 WebCD,
the update will be included.

Corduroy Frog

[Gene V]

Maybe I am missing something...

All recent previous updates have had a link to update the Web CD. I haven't found such a link on this update.

I suspect one of the following is true:

a) A link to update the WebCD exists, and I simply can't find it.
b) The new update does not affect the 2007 law, and hence no need
to update the 2007 WebCD. When TMI sends out the 2008 WebCD,
the update will be included.

Corduroy Frog

Mr. Frog,
The way I read the e-mail--the update will be on the new WebCD 2008

2008 WebCD

This update will be included in the initial release of the 2008 WebCD, scheduled for shipment beginning January 15th. There is no need to separately download this update if you are a WebCD customer.

[Brad Imsdahl]

The 2007 WebCD site where updates are downloaded has the following message:

Note: The 10-10-2008 update is the last update for the 2007 tax year WebCD. All updates posted on TheTaxAuthority™ Update Service after 10-10-2008 will be included on the 2008 tax year WebCD.

Thus, although new information may continue to be posted to TheTaxAuthority Update Service year round, new updates eventually roll over to the next edition of the WebCD.

It is our intention to keep the printed versions and the WebCD updated throughout the current year filing season. For example, the 2007 WebCD received all updates posted as of the extension deadline for 2007 tax returns (October 15, 2008). Likewise, page references to the 2007 printed versions were posted on TheTaxAuthority Update Service through the 10/15/2008 extension deadline. After 10/15/2008, all updates are associated with page references or information covered in the 2008 tax year edition. Future updates will continue to be associated with the 2008 edition until 10/15/2009, when everything switches over to the 2009 tax year editions. And so on.

[Uncle Sam]

Question on the Retiree RMD for 2009?

Based on this Dec.23 new law, does this pertain only to new retirees who must ordinarily must take distributions by 4/1/09 because of turning 70.5 in 2008 - or is it effective for ALL retirees regardless of age?

I ask because I've got this one client who is age 81, whose been taking his RMD from his IRA every year, calls me up every year to confirm that the RMD from his IRA he has with his stockbroker is correct.

[Lion]

Everyone

Anyone can skip their 2009 RMD (that's 2009 not 2008) or take less than the full 2009 RMD to allow their account to rebuild without the usual 50% penalty. It does NOT apply to a 2008 RMD nor a 2008 RMD that is allowed to be deferred to 1 April 2009 for a retiree who turned 70.5 during 2007. I may not have all those dates correct, and you really want to read the full Act if you have clients that want to take advantage of this during 2009.

[Corduroy Frog]

Bozo Frog

Mr. Frog,
The way I read the e-mail--the update will be on the new WebCD 2008
[/i]

Yes Gene, Thanks. Information was right in front of me, and couldn't be plainer.
Apologies to TTB.