In article
<67298d48-84af-417f-bc76-71e940118d25[at]r37g2000prr.googlegroups.com> ,
Ed <edurall[at]aol.com> wrote:

- quote -

There may be a misunderstanding here.

TIAA-CREF offers a "Minimum Distribution Option" (MDO) plan which people
having retirement savings in TIAA-CREF can sign up for _voluntarily_.

Once you sign up for this plan (which requires a fair amount of
paperwork), each year they compute your RMD for you and automatically
send it to you (by direct transfer into one of your bank accounts, if
you like) each year on a date you've chosen.

I suspect they're telling people on this MDO plan that TIAA-CREF will
continue to make these MDO payments in 2009, as scheduled, unless the
account holder specifically tells them, before the automatic
distribution date, NOT to do so.

And, I suspect that they're also saying that if someone on this MDO plan
suddenly realizes, after the MDO payment has been made, that they don't
want it to have been made, they'll make some provisions to reverse the
transactions.

========================================= MODERATOR'S COMMENT:
This explanation makes sense.

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Ed wrote:
- quote -

is the TIAA-CREF Qs&As on the 2009 RMD. They are correct as written.

Can I defer required minimum distributions in 2009?

President Bush signed into law new legislation that allows
individuals who are subject to required minimum distribution
rules to suspend required minimum distributions from their
retirement plan or Individual Retirement Accounts in 2009 without
penalty.

The law is intended to provide relief to people concerned about
the potential impact of ongoing financial market volatility on
their retirement accounts.

If you expect to receive a required minimum distribution in 2009
that you would like to suspend, you will need to contact
TIAA-CREF at 1 800 842-2776 to request a voluntary suspension.

The relief treats equally individuals who usually take the
"required distribution" amount monthly and those who take a lump
sum amount at the end of the year.

Will suspensions be available for beneficiaries (such as spouses
or partners), or will they be limited to the original account holder?

Account holders or their beneficiaries who are required to
receive a required minimum distribution payment in 2009 may
voluntarily request that the payment be suspended.

What if I receive a minimum distribution payment in 2009 that I
did not want to receive?

Individuals may return any minimum distributions received in
2009, provided they do so within 60 days of the minimum
distribution payment. The Minimum Distribution Statement you
receive from TIAA-CREF in January will include instructions for
returning your payment.

Can I take a partial distribution?

Yes. You would first need to receive your 2009 minimum
distribution payment and then return whatever amount you don't
want to take. The Minimum Distribution Statement you receive from
TIAA-CREF in January will include instructions for returning all
or part of your payment.

I depend on my distribution and do not want to suspend it. What
should I do?

You do not need to take any action. Participants who receive
minimum distributions will continue to receive them unless you
notify TIAA-CREF that you would like the payment to be suspended.

If you choose to receive your minimum distribution payment, keep
in mind that since your 2009 required distribution is based on
your 2008 year-end account value, the amount you receive may be
less because of recent fluctuations in the stock market
particularly if your allocation includes equities.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

JoeTaxpayer wrote:
- quote -

Just when you think you'd heard it all; along comes this from TIAA
Creef, whoever they are. Sounds like the writer of that blurb was
imbibing too liberally on the eggnog before Christmas.

However; we all need to get word to our clients ASAP about this
important item because some are already set up on "automatic" withdrawals.

ChEAr$,
Harlan Lunsford, EA n LA

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Ed wrote:

- quote -

Absolutely not.
Since today is only Jan 1, I'm pretty sure they'll get their story
straight shortly.

Joe

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

TIAA-CREF is telling its clients that they still have to take the RMD
in 2009, but then return the amount they wish to suspend. They also
say that the amount to be suspended must be returned within 60 days of
receiving the distribution.

This sounds like a bookkeeping nightmare.

Is this really the way the suspension will work?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >