Profiles Professional Training & Support
RMD Workaround
Addressing the Worker, Retiree, and Employer Recovery Act of 2008 in Profiles Professional
New legislation has been passed that places a one-year moratorium on required minimum distribution (RMD) rules for 2009.
Without this legislation, individuals over the age of 70½ are required to withdraw a specific amount from each of their qualified plans annually. Failure to take this required minimum distribution would incur a 50% penalty on the amount that should have been withdrawn, in addition to the ordinary income taxes due from the withdrawal. With this new legislation in place, the 50% penalty has been waived for year 2009, which may discourage individuals from taking qualified plan distributions that would have otherwise been required.
Profiles Professional still requires an RMD-type distribution in client cases that meet the age criterion. This document describes a workaround for removing the RMD provision for year 2009 in Profiles Professional:
Addressing the Worker, Retiree, and Employer Recovery Act of 2008 in Profiles Professional
