Suspension of RMD Requirements?

From the University of Denver Planned Giving Design Center:

Bill Suspends Minimum Required Distributions; Implications for Charitable IRA Rollovers

Published on Wednesday, December 17th, 2008.

Congress has passed and sent to the President for signature H.R. 7327, the Worker, Retiree and Employer Recovery Act of 2008, a bill that places a one year moratorium on required minimum distributions from Individual Retirement Accounts and defined contribution plans for 2009. Although the intent of the legislation is to give retirees an opportunity to recoup financial losses suffered in the last year, it may adversely affect some charitable IRA rollovers.

Editor's Note: Our initial reporting stated participants would be able to recontribute MRDs made in 2008 back into their plans. This was based on a press release from Senator Olympia J. Snowe's office (R-Maine) that PGDC Editors misconstrued as applying to the current bill.

Welcome to Our Blog

Welcome to our firm's blog. This is where we discuss items of interest in estate planning. We hope you will join in these discussions as your questions and comments spark our discussions and our work with clients.

Many people mistakenly believe that you have to be rich to need estate planning. Nothing could be further from the truth. The size of your estate may lead to certain suggestions and recommendations, but the only thing you need to need estate planning is to be alive.

Please let us know of your questions and specific interests.

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Nothing that appears anywhere in our blog or messages is intended to be used, nor can it be used to evade any taxes or penalties.

Estate Planning 2009 & Beyond

With the election over, we know who our next President will be and the makeup of the next Congress. For estate planning we also know what has been promised by an Obama administration.

The federal estate tax exemption increases to $3,500,000 on January 1, 2009. President Elect Obama has endorsed this level for the federal estate exemption going forward.

Mr. Obama has also promised legislation making any exemption not used at the first death of a married couple available on the surviving spouse's death. If enacted this will make traditional marital deduction planning obsolete.

However, there remains a significant and acute need for appropriate planning even under an Obama estate tax administration. Protection of the surviving spouse and children; along with other family members will remain a focal point for your estate planning.

Higher exemptions and exemption portability do not eliminate the need for estate planning, but changes the focus in the planning process.

To learn how these changes impact your planning, please contact our office for more information.

Thank you.