Under the Worker, Retiree, and Employer Recovery Act of 2008 (“WRERA”), participants in qualified defined contribution plans and IRA owners need not take required minimum distributions (“RMDs”) for 2009. A number of issues arose concerning this waiver of 2009 RMDs. In September, the IRS issued Notice 2009-82 to provide guidance on these issues. The Notice included some transitional relief.
Under the Notice, a qualified defined contribution plan will not be treated as failing to satisfy the qualification requirement that it be operated in accordance with its terms merely because, during the period which begins on January 1, 2009, and which ends November 30, 2009:
— distributions that equal the 2009 RMDs, and additional amounts which qualify for rollover treatment and with which the 2009 RMDs are included (the “Eligible Rollover Amounts”), were paid or not paid;
— participants were not given the option of receiving or not receiving distributions that include 2009 RMDs; or
— a direct rollover option was or was not offered for 2009 RMDs and any Eligible Rollover Amounts .
Further, under the Notice, payments to a plan participant in 2009 will not be treated as ineligible for rollover, on account of being RMDs, if the payments equal the 2009 RMDs and any Eligible Rollover Amounts, provided the other rules of the Code for rollover treatment are satisfied. Any 2009 RMD and Eligible Rollover Amounts may be rolled over by a participant by the later of November 30, 2009 or the 60th day after receipt.