Employee Benefits and Executive Compensation e-Alert

EBEC Attorneys

Brian M. Johnston
Chair
(816) 360-4319
bjohnston@polsinelli.com

Jamie Zveitel Kwiatek
Vice-Chair
(314) 889-7088
jkwiatek@polsinelli.com

Courtney M. Brunsfeld
(314) 889-7025
cbrunsfeld@polsinelli.com

Michael V. Conger
(816) 360-4145
mconger@polsinelli.com

Amy M. Grace
(816) 374-0539
agrace@polsinelli.com

Dennis D. Palmer
(816) 374-0593
dpalmer@polsinelli.com

Marsha R. Woodward
(816) 360-4318
mwoodward@polsinelli.com

www.polsinelli.com

October 2009

IRS Issues Guidance on 2009 Required Minimum Distributions

Employee Benefits & Executive Compensation Alert

On September 24, 2009, the IRS issued Notice 2009-82, which provides guidance with respect to the waiver of 2009 required minimum distributions. In late 2008, the Worker, Retiree and Employer Recovery Act of 2008 (WRERA) provided a one-year suspension of the required minimum distribution rules of Section 401(a)(9) of the Internal Revenue Code.

Previously, the IRS had issued little guidance to plan sponsors and administrators regarding how to handle required minimum distributions in 2009. As a result, some plan participants received distributions they were not required to receive, and it was not clear whether these participants could roll over the amount received to an IRA or another qualified plan. Other plan participants were told their distributions were not eligible for rollover. Notice 2009-82 addresses many previously unanswered questions, and also provides sample amendments that may be used to bring plan documents into compliance with this guidance.

Plan sponsors should review how they handled 2009 required minimum distributions and communicate the rollover options to any participants who received 2009 required minimum distributions. IRA owners may wish to contact their custodians regarding rolling 2009 required minimum distributions back into their accounts.

For more information on Notice 2009-82 and its implications, click here.

For more information:

For more information, please contact Courtney Brunsfeld, (314) 889-7025, cbrunsfeld@polsinelli.com, or any other member of the Polsinelli Shughart Employee Benefits and Executive Compensation practice group.

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