Minimum IRA withdrawal Rules May Change

As the value of most IRAs has declined with the economic climate, it appears likely that the Congress/Treasury action will at least temporarily change minimun distribtion rules after 70 1/2 to prevent beng forced to liquidate devalued holdings.
Nov. 1, 2008 - PRLog -- The Wall Street Journal today reported that the Congress or Department of Treasury acting on its own are at least likely to relax the rules for required mimimum distributions for persons over 70 1/2. The recent stock market collapse has resulted in most such IRA containing greatly devalued assets and such action would seem give relief to seniors facing likely losses by following the rules in IRS Pub 590.

Both presidential candidates have come out in favor of temporarily changing the rules requiring the mandated required minimum distributions.

While details are now unavailable, the relief would have to be something that the majority of people can take advantage of.

The JOURNAL's best advice: Delay taking the mandatory minimun distribution to see and hold off as long as possible to see how the rules change.

# # # is trade name for Mark Schrimpf, IRS lilcensed Enrolled Agent helping taxpayers with IRS problems, IRS debt, federal & state return preparation and a full range of federal tax services based on 20+ years of inside IRS experience.

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