Retirees Catch a Break from Congress
Dale Merritt, wealth strategist for Banyan Rock & Talent believes that retirees have caught a break with the government’s suspension of the required minimum distribution for 2009.
Raleigh, NC, February 10, 2009 --(PR.com)-- Retirees Catch a Break from Congress
Required Minimum Distribution Suspended for 2009
Many Americans have seen their retirement accounts decimated as a result of volatile financial markets. Dale Merritt (www.dalemerritt.net), wealth strategist for Banyan Rock & Talent, a Raleigh-based provider of insurance and financial services, announces recent law changes designed to help relieve this financial burden on seniors.
IRS regulations require holders of retirement accounts to withdraw a minimum amount of money every year after they reach 70 ½ years old. This amount is referred to as required minimum distribution (RMD). According to the IRS Web site (www.irs.gov), seniors, who do not take the minimum distribution by December 31 each year, are subject to a 50 percent tax on the RMD amount not withdrawn.
Congress approved the Worker, Retiree and Employer Recovery Act (HR 7327) in December 2008. A portion of this bill provides a one-year moratorium on RMDs for the 2009 calendar year. This waiver applies to all defined-contribution plans, including Individual Retirement Arrangements (IRAs), 401(k), Profit-Sharing, Money Purchase Pension, 403(b), and certain 457 retirement plans. It is important to note that the Act does not waive any 2008 RMDs due to be withdrawn before April 1, 2009.
"What this means for seniors who do not need the full RMD amount to meet their annual expenses is that they can choose to leave their money in their retirement accounts without IRS penalty," says Merritt. "If the market rebounds, the value of these accounts can grow. The higher the cash value of these accounts before a market rise, the greater potential for account value recovery."
In addition to easing RMD requirements, the Act makes technical corrections to the Pension Protection Act of 2006. The Act also eases some business funding requirements and offers some workers security and protection provisions. A PDF explaining HR 7327 can be downloaded at www.house.gov.
For additional investment and retirement information, visit www.dalemerritt.net.
About Dale Merritt:
Dale Merritt is a wealth strategist with Banyan Rock & Talent. Having grown up in Zebulon, Dale is eager to provide financial opportunities to the community in which he was raised, offering real estate and retirement planning as well as other financial services to eastern Wake County. Merritt has several securities registrations including Series 6, 7, 63 and 66, as well as a Long-Term Care Insurance license and a Life Insurance license. Merritt believes in remaining active in the community. In addition to being part of the Zebulon Chamber of Commerce and the Knightdale Chamber of Commerce, he maintains active membership in the North Carolina Cattlemen's Association and the Appalachian State University Triangle Alumni Chapter. He and his wife, Katie, also volunteer with the Paw Prints Animal Rescue in Garner. For more information, call (919) 782-0033 or visit www.dalemerritt.net.
About Banyan Rock & Talent:
Based in Raleigh, Banyan Rock & Talent is a collaboration of registered reps with FSC Securities Corporation. Founded in 1986 on the philosophy that strength, growth and the diversification of their client's hard-earned money is made possible through knowledge, diligence and years of experience, Banyan Rock & Talent specializes in areas including stocks, bonds, mutual funds, variable annuities, retirement strategies, market timers, life insurance, disability insurance and applied real estate. All strategists are registered representatives offering securities through FSC Securities Corporation, a registered broker-dealer, and member of FINRA/SIPC. For further information, visit 3356 Six Forks Road Raleigh, NC 27609, or call (919) 782-0033.
Securities and Advisory Services offered through FSC Securities Corporation, Member FINRA/SIPC. Banyan, Rock & Talent is not affiliated with FSC Securities Corporation or registered as a broker/dealer or investment adviser.
Investors should be aware that there are risks inherent in all investments, such as fluctuations in investment principal. With any investment vehicle, past performance is not a guarantee of future results. Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.
Media Contact:
Cindy Stranad
919.232.5008
Cindy@articulon.com
###
Required Minimum Distribution Suspended for 2009
Many Americans have seen their retirement accounts decimated as a result of volatile financial markets. Dale Merritt (www.dalemerritt.net), wealth strategist for Banyan Rock & Talent, a Raleigh-based provider of insurance and financial services, announces recent law changes designed to help relieve this financial burden on seniors.
IRS regulations require holders of retirement accounts to withdraw a minimum amount of money every year after they reach 70 ½ years old. This amount is referred to as required minimum distribution (RMD). According to the IRS Web site (www.irs.gov), seniors, who do not take the minimum distribution by December 31 each year, are subject to a 50 percent tax on the RMD amount not withdrawn.
Congress approved the Worker, Retiree and Employer Recovery Act (HR 7327) in December 2008. A portion of this bill provides a one-year moratorium on RMDs for the 2009 calendar year. This waiver applies to all defined-contribution plans, including Individual Retirement Arrangements (IRAs), 401(k), Profit-Sharing, Money Purchase Pension, 403(b), and certain 457 retirement plans. It is important to note that the Act does not waive any 2008 RMDs due to be withdrawn before April 1, 2009.
"What this means for seniors who do not need the full RMD amount to meet their annual expenses is that they can choose to leave their money in their retirement accounts without IRS penalty," says Merritt. "If the market rebounds, the value of these accounts can grow. The higher the cash value of these accounts before a market rise, the greater potential for account value recovery."
In addition to easing RMD requirements, the Act makes technical corrections to the Pension Protection Act of 2006. The Act also eases some business funding requirements and offers some workers security and protection provisions. A PDF explaining HR 7327 can be downloaded at www.house.gov.
For additional investment and retirement information, visit www.dalemerritt.net.
About Dale Merritt:
Dale Merritt is a wealth strategist with Banyan Rock & Talent. Having grown up in Zebulon, Dale is eager to provide financial opportunities to the community in which he was raised, offering real estate and retirement planning as well as other financial services to eastern Wake County. Merritt has several securities registrations including Series 6, 7, 63 and 66, as well as a Long-Term Care Insurance license and a Life Insurance license. Merritt believes in remaining active in the community. In addition to being part of the Zebulon Chamber of Commerce and the Knightdale Chamber of Commerce, he maintains active membership in the North Carolina Cattlemen's Association and the Appalachian State University Triangle Alumni Chapter. He and his wife, Katie, also volunteer with the Paw Prints Animal Rescue in Garner. For more information, call (919) 782-0033 or visit www.dalemerritt.net.
About Banyan Rock & Talent:
Based in Raleigh, Banyan Rock & Talent is a collaboration of registered reps with FSC Securities Corporation. Founded in 1986 on the philosophy that strength, growth and the diversification of their client's hard-earned money is made possible through knowledge, diligence and years of experience, Banyan Rock & Talent specializes in areas including stocks, bonds, mutual funds, variable annuities, retirement strategies, market timers, life insurance, disability insurance and applied real estate. All strategists are registered representatives offering securities through FSC Securities Corporation, a registered broker-dealer, and member of FINRA/SIPC. For further information, visit 3356 Six Forks Road Raleigh, NC 27609, or call (919) 782-0033.
Securities and Advisory Services offered through FSC Securities Corporation, Member FINRA/SIPC. Banyan, Rock & Talent is not affiliated with FSC Securities Corporation or registered as a broker/dealer or investment adviser.
Investors should be aware that there are risks inherent in all investments, such as fluctuations in investment principal. With any investment vehicle, past performance is not a guarantee of future results. Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.
Media Contact:
Cindy Stranad
919.232.5008
Cindy@articulon.com
###
Contact
Banyan Rock & Talent
Cindy Stranad
919-232-5008
http://www.dalemerritt.net
Cindy Stranad
919-232-5008
http://www.dalemerritt.net
Contact
Categories