Edward Jones
Special to the Courier

If you are turning 70-1/2 in 2009, you just got a gift from your Uncle Sam.

Specifically, Congress passed legislation that allows you to postpone taking required minimum distributions, or RMDs, from your traditional IRA and your 401(K).

The IRS generally requires you to start taking RMDs in the year in which you turn 70-1/2, or no later than April 1 of the next year.  However, given current market conditions, the value of your IRA or 401(K) is probably considerably lower than in earlier years.  So, if you were forced to take distributions in 2009, you might have to sell some investments when their price was down.

Under the new law, though, you will now be able to put distributions off until the end of 2010.  So consult with you tax advisor to see if you can take advantage of this one-year "holiday".

This article was written by Edward Jones for use by Luz E Polcik, your local Edward Jones Financial Adviser.  Luz can be reached at 760-379-1722.