Pension relief bill approved in House
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Friday, 12.12.08
Finally, the bill suspends for 2009 the law under which senior citizens who have reached age 70 ½ must withdraw a minimum amount from their retirement plan or IRA.
Those that don't are subject to a 50 percent excise tax penalty on the amount that should have been withdrawn.
People have lost trillions of dollars from their retirement accounts over the last few months, House Education and Labor Committee Chairman George Miller, D-Calif., said.
The bill should ``provide important relief to seniors who may face a steep tax if they do not make a withdrawal from their depleted retirement accounts.''
I wanted it for 2008 also....
The problem for 2008 is most have already taken that money. So they pay the tax this year. But maybe this is a blessing in disguise in that if they took the money prior to Sept. 15 they are about 20% ahead on that money.