Before it adjourned in December 2008, the 110th Congress enacted the Worker, Retiree, and Employer Recovery Act of 2008 (the Act), providing a one-year moratorium on minimum required distributions from IRAs and defined contribution plans. Owners and beneficiaries of IRAs and defined contribution plans who are 70½ or older are required to take minimum required distributions (MRDs) from their plans each year. Failure to take the MRD generally results in a penalty of 50 percent of the MRD. Under the Act, individuals can skip taking their 2009 MRD and no penalties will apply.
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