The Worker Retiree and Employment Recovery Act of 2009 (WRERA) waived required minimim distributions (RMDs) for 2009 from defined contribution (DC) plans and individual retirement arrangements (IRAs). Notice 2009-82 provides 2 sample plan amendments that individually designed or pre-approved plan sponsors may adopt or use to amend their plans to either:
• cease making 2009 RMDs unless a participant or beneficiary elects otherwise; or
• continue making 2009 RMDs unless a participant or beneficiary elects otherwise.
The IRS has granted transitional relief for plans for the period January 1, 2009 to November 30, 2009; therefore, if a plan's operation conflicts with the adopted sample amendment during this period, the IRS will not consider it an operational failure.
Individuals may roll over any amount they receive from a DC plan, or an IRA, in 2009, that would have been an RMD for 2009 but for WRERA, if it meets the definition of an eligible rollover distribution (ERD). For plan participants and IRS owners who have already received their 2009 RMDs, but the 60-day rollover period has expired, the IRS has extended the rollover period for these additional distributions until November 30, 2009. However, because of the special one-rollover-per-year rule for IRAs, which was not changed by WRERA, an IRA owner may be able to make only one rollover if his or her 2009 RMDs were paid in installments.
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