**Part III. Administrative, Procedural and Miscellaneous**

**Required Minimum Distributions for 2009**

**Notice 2009-9**

**PURPOSE**

This notice provides guidance to financial institutions on reporting
required minimum distributions for 2009 after enactment of the Worker,
Retiree, and Employer Recovery Act of 2008, P.L. 110-458.

**BACKGROUND**

On December 23, 2008, the President signed the Worker, Retiree, and
Employer Recovery Act of 2008 (the Act) into law. Section 201 of the Act
waives any required minimum distributions (RMDs) for 2009 from
retirement plans that hold each participant's benefit in an individual
account, such as § 401(k) plans and § 403(b) plans, and certain § 457(b)
plans. The Act also waives any RMD for 2009 from an Individual
Retirement Arrangement (IRA). This means that most participants and
beneficiaries otherwise required to take minimum distributions from
these types of accounts are not required to withdraw any amount in 2009.
If they do make a withdrawal in 2009 (that is not an RMD for 2008), they
might be able to roll over the withdrawn amount into other eligible
retirement plans. Of course, they must still include any previously
untaxed portion of the withdrawal that they do not roll over in their
gross income. See *Individual Retirement Arrangements (IRAs*),
[Publication 590](http://www.irs.gov/pub/irs-pdf/p590.pdf), and *Pension
and Annuity Income*, [Publication
575](http://www.irs.gov/pub/irs-pdf/p575.pdf), for additional
information on rollovers and on calculating the taxable portion of a
distribution.

The Act does not waive any 2008 RMDs, even for individuals who were
eligible and chose to delay taking their 2008 RMD until April 1, 2009
(*e.g.,* retired employees and IRA owners who turned 70½ in 2008). These
individuals must still take their full 2008 RMD by April 1, 2009. The
2009 RMD waiver under the Act does apply to individuals who may be
eligible to postpone taking their 2009 RMD until April 1, 2010
(generally, retired employees and IRA owners who attain age 70½ in
2009). However, the Act does not waive any RMDs for 2010.

If a beneficiary is receiving distributions over a 5-year period, he or
she can now waive the distribution for 2009, effectively taking
distributions over a 6-year rather than a 5-year period.

**IRA REPORTING**

Issuers of the 2008 [Form
5498](http://www.irs.gov/pub/irs-pdf/f5498.pdf), *IRA Contribution
Information*, should **not** put a check in Box 11. However, in
recognition of the short amount of time to make programming changes, if
a financial institution issues a 2008 Form 5498 with a check in Box 11,
the IRS will not consider such form issued incorrectly solely because of
the check in Box 11, provided the IRA owner is notified by the financial
institution no later than March 31, 2009, that no RMD is required for
2009.

In addition, the RMD information required under [Notice
2002-27](http://www.irs.gov/pub/irs-irbs/irb02-18.pdf#page=7), 2002-18
I.R.B. 814, need not be sent to IRA owners for 2009. If a financial
institution sends a separate RMD statement to an IRA owner, either
initially or in response to the owner's request for the financial
institution to calculate the RMD for 2009, the financial institution
must show the RMD for 2009 as zero (0). Alternatively, the financial
institution may send the IRA owner a statement showing the RMD that
would have been required but for the waiver of RMDs for 2009, along with
an explanation of the waiver for 2009.

The IRS encourages all financial institutions to inform IRA owners who
delayed taking their 2008 RMD until April 1, 2009, that they are still
required to take that distribution.

**EFFECT ON OTHER DOCUMENTS**

Notice 2002-27 is modified.

**DRAFTING INFORMATION**

The principal author of this notice is Anita Bower of the Employee
Plans, Tax Exempt and Government Entities Division. Questions regarding
this notice may be sent via e-mail to RetirementPlanQuestions@irs.gov.