President Bush has signed the Worker, Retiree, and Employer Recovery Act of 2008, which includes a one-year suspension of minimum required distributions (MRDs) for 2009.

This has a potential positive impact on retirees taking distributions on their retirement funds. MRDs are normally required by law annually for anyone age 70½ or older who owns retirement accounts, including IRAs, rollover IRAs, SEP-IRAs, SIMPLE IRAs, and employer-sponsored retirement plan accounts.*

Although you can still take distributions from your retirement accounts for income, you are not required to do so for 2009. If you have already taken distributions after January 1, 2009 for your 2009 MRD but don't need the income, you can generally roll that money back into an IRA to the extent it qualifies as a 60-day rollover. You will need to do this within 60 days of receiving the distribution to avoid paying taxes.

If you need to take withdrawals from savings to cover planned expenses in 2009,  consider taking this money from non-retirement accounts first. This will allow assets in your retirement accounts to benefit from tax deferral. Now may also be a good time to revisit your retirement income plan and consolidate retirement accounts for greater control and convenience.

Rick

MARYLAND: The Maryland Insurance Administration's 2009 legislative package reflects its consistent theme of adding to or bolstering insurance laws to increase consumer protection. Its bills would: Amend the existing statutory loss ratio benchmarks in the individual market (60 percent to 80 percent), small group (75 percent to 85 percent) and Medicare supplement (75 percent to 85 percent group; 65 percent to 80 percent individual); prohibit rescission of an individual policy if the contract was issued without complete underwriting; and have the individual policy look-back and pre-existing condition requirements conform to the 6-month and 12-month requirements for group policies. Although no bill has been filed, the medical society intends to focus on increased reimbursement, including administrative services and electronic/telephonic communications; and protection from "punitive" action by third-party payers when physicians perform and charge members for non-clinical services.