New IRA and 401k Law for Withdrawls after age 70-1/2.

Congress and President Bush signed legislation that suspends the rule requiring retirees over 70 ½ to take withdrawals (RMDs) from tax-deferred retirement accounts, such as traditional IRAs and 401(k)s. This suspension currently lasts for one year, 2009. The intention is to give retirement accounts time to rebound from the difficult economy/market conditions.

Please note that you can still take distributions from your IRAs during 2009; they are just not required.

Customers who turned 70 ½ in 2008 and chose to delay their first RMD payment will still have to take their 2008 RMD by April 1, 2009