2010 Mdr

[S T]

The questions are arriving for year end planning and moving forward into year 2010.

With the Minimum Distribution Requirements suspended in 2009 - questions arises how to calculate the MDR for year 2010? We use the 12/31/2009 balance and apply the appropriate year factor, correct, just as if nothing happened. ????

Thanks,

Sandy

[Snaggletooth]

Good Question

I don't think ANYTHING was done for 2010, certainly no "catch up" requirements which would double up for 2010.

Remember, when Congress allowed the one-year hiatus, it was not to be a tax break for individuals. It was so the greedy banks could hold on to more cash. So it would not be prudent for a "double up" requirement in 2010.

However, ipso facto, what HAS happened: Resuming the "normal" requirements in 2010 means the RMD percentage will be applied to a portfolio maybe 20%-25% higher than the value of the account in 2009.

[S T]

RMD Resume 2010

Thanks Snags,
That is what I had thought - Repreive for distributuion in 2009, so if the balance recovered, moving forward to year 2010, and use 12/31/09 balance. Maybe higher balance, maybe lower balance depending on investment.

Was looking for confirmation of which balance and factor to use for RMD in 2010.

So moving forward


Sandy