Caught in the pension turmoil are those seniors who participate in a defined benefit plan and do not realize that they must take their Required Minimum Distribution.

 

New Pension Law Hurts Senior Citizens

Pension Expert Explains how Seniors can Protect their Pensions in 2009

PLAINVIEW, NY (MMD Newswire) January 7, 2009 - - Due to the stock market decline in 2008, many 401(k)s and IRAs lost much of their value. Many Defined Benefit Plans are also significantly under-funded.  

To provide relief for many seniors, Congress approved a temporary pension bailout that suspended the requirement that seniors take their 2009 Required Minimum Distribution.  However the Pension Bailout does NOT provide relief for all seniors. Caught in the pension turmoil are those seniors who participate in a defined benefit plan and do not realize that they must take their Required Minimum Distribution.

The “Worker, Retiree and Employer Recovery Act of 2008” suspends the requirement that seniors take their Required Minimum Distribution (RMD) in 2009.  However, the new law only suspends RMDs for those people in IRAs, 401(k)s, 403(b)s and other types of Defined Contribution plans.  Seniors with money in Defined Benefit Plans will still have to take their RMDs in 2009.

“By suspending the RMDs in 2009, The Worker, Retiree and Employer Recovery Act was supposed to allow retirement accounts to recover from the stock market crash and lower taxes for seniors,” explains Brett Goldstein, a Plainview, New York-based pension administrator and President of The Pension Department. “However many defined benefit plans will not get the same chance to recover as IRAs and 401(k)s, since Defined Benefit Plans still have to pay RMDs in 2009.  Why are some seniors getting a chance to lower their taxes, while those in defined benefit plans still have to pay taxes on their RMDs?  The Pension bailout should provide relief for all Americans not just the ones with 401(k)s, IRAs and 403(b)s.  This law needs to be corrected immediately, so that all seniors have the opportunity to lower taxes and build up their retirement account,” he urges.

Seniors must start to take a required distribution from their retirement accounts by April 1st of the following the year in which they reach age 70 ½.  Then seniors must take a RMD every year thereafter.  

About Brett Goldstein:
Brett Goldstein is a pension administrator and president of The Pension Department, a consultancy based in Plainview, New York.   He is a speaker and media personality who specializes in providing businesses and individuals with affordable retirement planning solutions.  Goldstein’s timely advice and tips have been featured on Fox Business Network, Wall Street Journal Radio, MarketWatch.com, Kiplingers, New York Daily News, The Chicago Tribune, and many others.  Investment services are offered exclusively through:  Cadaret, Grant & Co., Inc. Member FINRA/SIPC.

Available for Interview:
Brett Goldstein is available for interview in the Greater New York City Area or nationwide by phone or in person with advanced notice.

Media Contact:
Brett Goldstein
The Pension Department
Email: bgoldtpa@aol.com or bgoldtpa@optonline.net
Phone: (516) 346-2999 or cell 516-314-3289

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