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Waive Your 2009 Required Minimum Distribution
Ready for some good news for a change? Thanks to new legislation, people age 70 1/2 or older and beneficiaries of retirement accounts can skip their 2009 required minimum distributions (RMDs).
The new law - called the Worker, Retiree, and Employer Recovery Act of 2008 - was passed in December 2008. Supporters of the law said it was unfair to require retirees and beneficiaries of IRAs to withdraw funds from retirement accounts in the wake of the stock market downturn.
The law waives the 2009 RMD for:
- Traditional IRAs, SEP IRAs, SIMPLE IRAs and inherited IRAs (including Roth IRAs)
- Certain Defined contribution plans [401(k) plans, profit sharing plans and money purchase plans]
- 403(b) plans
- 457(b) plans
Remember, this waiver is for 2009 distributions only. It does not apply to defined benefit (pension) distributions.
Principal Funds is here to help
If you have questions about the new law and how it affects you, Principal Funds is here to help. Call us at 800-222-5852 or contact your financial professional. To request your RMD form, click here.
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
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To obtain a prospectus, download online or call Customer Service at 1.800.222.5852
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call Customer Service at 1.800.222.5852.
A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.
This Web site was created and is maintained by Principal Funds Distributor, Inc. exclusively, and not by the Directors of the funds.
Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.
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