Penalties Waived for Mandatory Withdrawals in 2009

Typically upon reach the age of 70 1/2 you would  have to begin taking out your minimum required distributions out of your retirement accounts.  By retirement accounts I mean IRAs, 401(ks), and 403(b) accounts, all deferred taxation qualified accounts.

However, with the recently passed Worker, Retiree and Employer act of 2008, there is a one-year moratorium on the penalties so that retirees and older Americans will not be forced to take their withdrawals from these savings plans that have incurred dramatic losses with the state of the economy.

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