Worker, Retiree and Employer Recovery Act of 2008

On December 23, 2008, President Bush signed into law the Worker, Retiree and Employer Recovery Act of 2008. One provision of this Act is the temporary waiver of Required Minimum Distribution (RMD) rules for certain retirement plans and accounts for calendar year 2009.

In general, this waiver applies to:

-Defined contribution plans as described in IRS Section 403(a), and 403(b) plans (TSAs);
Governmental plans as described in IRS Section 457(b); and Individual retirement plan (IRAs & SEPs)

You are encouraged to consult with your tax or legal advisor to determine how these provisions of the Worker, Retiree and Employer Recovery Act of 2008 may pertain to you. Previously requested 2009 RMDs or RMDs under an automatic withdrawal program will be processed unless you specifically request us not to do so.

This legislation waives IRA, SEP, SARSEP, 403(b), governmental 457, and defined contribution plan RMDs (required minimums distributions) for the year 2009 only. This waiver DOES NOT INCLUDE first-time RMDs for individuals who turned 70 ½ in 2008, that have been delayed to on or before April 1st 2009. Such distributions are treated as 2008 distributions (and are based on December 31, 2007 account values). These distributions are not waived.

If you reached age 70 ½ in 2008 and elected to postpone your first distribution until April 1, 2009, we must receive your completed Required Minimum Distribution Election Form no later than April 1, 2009, in order to process your Required Minimum Distribution amount for 2008.

More information regarding Required Minimum Distributions may be found in Internal Revenue Service (IRS) Publication 590.