Section 401(a)(9) of the Internal Revenue Code . . . generally requires a participant in a tax-qualified retirement plan to receive a minimum distribution from the plan by April 1 of the calendar year following the later of the year in which the participant attains age 70½, or retires (the “required beginning date”). RMDs are also required for beneficiaries of deceased participants. . . . The RMD rules are designed to prevent the use of retirement plans as a tax shelter by requiring that minimum distributions be made to participants.

. . . The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) waived the required minimum distribution from IRAs and defined contribution plans (but not defined benefit pension plans) for calendar year 2009. As a result of the waiver, an individual who has a required beginning date in 2009 is not required to receive the 2009 RMD by April 1, 2010, but must receive the 2010 RMD by Dec. 31, 2010. If the required beginning date occurred in 2008, the 2008 RMD was required by April 1, 2009, but no RMD is required for 2009.

. . . Pursuant to Notice 2009-82, employers must decide by Nov. 30, 2009, whether to:
• Suspend all RMDs for 2009, unless the participant affirmatively requests the distribution
• Distribute all RMDs for 2009, unless the participant affirmatively requests the waiver
• Continue RMDs for 2009 in accordance with plan provisions without a choice from participants.

In addition, employers will need to decide by Nov. 30, 2009, whether and to what extent direct rollovers of distributions containing 2009 RMDs will be offered to participants.

The rest of the story . . . .