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Winter 2009 eNews from Neiman & Associates Financial Services, LLC

Hello and Happy New Year! In this edition of eNews:
  • Learn about new rules that may allow you to delay taking taxable distributions from your retirement plans and IRAs
  • Discover how new 529 Plan rules allow for greater investment flexibility
  • Read about a life-enriching community program for people aged 58+
  • Find out how you can recycle your Christmas Tree and other household items

    • We hope you enjoy this newsletter.

    The Worker, Retiree, and Employer Recovery Act of 2008
      Several provisions are designed to ease the stress of the current economic climate

    On December 23, 2008, President Bush signed into law H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA). WRERA includes two provisions which are meant to alleviate some of the stress caused by the downturn in the financial markets.

    Required Minimum Distributions

    Required minimum distributions (RMDs) are suspended for the 2009 calendar year only. This applies to all qualified plans, including 401(k) plans, 403(b) plans, and IRAs.

    Taxpayers who reach age 70 1/2 during 2008 have until April 1, 2009 to take their first RMD. This new rule does not change this requirement.

    Non-spousal Rollovers

    The Pension Protection Act of 2006 extended the ability to rollover an inherited qualified plan to a non- spouse beneficiary. Then, the IRS thwarted Congress by ruling that qualified plans are not mandated to allow non-spousal rollovers. If they wanted to they could, but were not required to do so.

    WRERA provides that all plans must permit rollovers for non-spouse beneficiaries and provide notice of the distribution.

    This provision is effective for plans starting on January 1, 2010.

    In order to establish the rollover, non-spouse beneficiaries will need to execute a direct trustee-to- trustee transfer. Additionally, the minimum required distribution rules must be followed.

    Ruling Allows More Flexbility in 529 Plans
      Plan Owners can Now Make Two Investment Changes

    The U.S. Treasury Department and the IRS issued a ruling that allows 529 college savings plan account owners to change their investment strategy twice this year.

    Previously, owners of 529 accounts were limited to only one strategy change per year.

    The ruling is in effect for 2009 only. The College Savings Plan Network is working with the Treasury and the IRS to make the ruling permanent.
    Are You Age 58+ and Looking to Enrich Your Life Through Education?
      The Boston University Evergreen Program BU logo
    The Boston University Evergreen Program is a wonderful way to enrich your life through the opportunity to learn, make new friends, and participate in the intergenerational setting of the University.

    Evergreen offers lectures and discussions on interesting and meaningful topics conducted by recognized experts. Evergreen also offers the opportunity to take University courses on a non-credit basis. By attending these activities in a campus environment, elders share in and contribute to the University community.

    The only qualification for attending Evergreen is attainment of age of fifty-eight. No educational credentials or professional affiliations are required.
    Recycle Your Christmas Tree...and Other Household Items
      A Green Idea

    Earth911 is a vaulable resource to find out where you can recycle most household items. Just click the link, enter the item that you want to recycle and your location, and the site will provide you a list of locations.
    More Great Ideas
     
    Visit our website for more great ideas. And feel free to pass along your suggestions for other ideas that we should post.
     

    We help clients transform complexity into opportunity so they can live rich, rewarding lives.

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