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Question

I turned 70 1/2 in Feb 2008.( I was born 8/26/1938) Pres. Bush defered mandatory withdrawls (age 70 1/2 ) for 1 yr. in 2008. Question; Can I make my first mandatory withdrawl before Jan.1 2010,and my second in 2010 without incurring any penalities? Before the additional extension of 1 year,I would have had to make my first withdrawl before 70 1/2 ( Feb 08 ) and then a second withdrawl before the end of 2008 to complete my first year withdrawl requirement.These 2 withdrawls in the same calendar year would have subjected me to huge income taxes obligatios in that year. by making my first mandatory withdraw in 2009, can I eliminate the 2 withdrawls in 1 calander year (2010) and the resulting large tax obligations (2010).

Submitted: 31 days and 12 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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Accepted Answer

For 2009, you are not required to take a minimum distribution from your traditional IRA. This waiver applies to IRA participants as well as to beneficiaries.

 

The waiver does not apply to minimum required distributions for 2008, even if you turned 70½ in 2008 and choose to take the 2008 required minimum distribution by April 1, 2009.

 

Let me know if you need any help.

 

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Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 10/21/2009

Tax Preparer

Taxes, Immigration, Labor Relations

31 days and 12 hours ago.

Reply

I,m sorry .I missed stated turning 70 1/2 in 2008. I turned 70 1/2 in Feb. 2009. does this change anything. Thanks.

Posted by LEV 31 days and 11 hours ago.

Answer

For 2009, you are not required to take a minimum distribution from your traditional IRA. This waiver applies to IRA participants as well as to beneficiaries. The waiver also applies to you if you turn 70½ in 2009 and delay your 2009 required minimum distribution until April 1, 2010.

 

If you received a distribution in 2009 that would otherwise be a required minimum distribution, you can roll over that amount into another IRA or eligible retirement plan within 60 days of the distribution.

 

If you reach age 70½ in 2009, you are not required to receive your first distribution by April 1, 2010. Your first required distribution however must be made for 2010 by December 31, 2010.

 

Please plan your distribution wisely to avoid higher tax brackets.

Let me know if you need help to estimate your tax liability in each scenario.

 

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