WASHINGTON -(Dow Jones)- President George W. Bush will sign legislation suspending a requirement that seniors take a minimum distribution from retirement accounts in 2009 into law, the White House said Monday.
The bill, which passed both houses of Congress last week, would spare seniors from having to sell some investments at a loss in order to meet Internal Revenue Service requirements for tax-favored accounts, such as individual retirement accounts and 401(k)s.
It eases funding requirements for companies with defined-benefit pension plans, allowing them more time to meet those requirements at a time when many companies are feeling a cash crunch.
The White House opposed the defined-benefit pension changes, and it was unclear if it would attempt to block the bill.
White House spokesman Tony Fratto, however, confirmed that Bush will sign the bill. He wasn't sure when that would happen because the White House hasn't yet received the legislation.
Current tax rules require individuals age 70 1/2 and above to take minimum distributions from tax-favored retirement accounts. If they do not, they must pay a 50% penalty on the required minimum distribution amount.
The bill waives that penalty for 2009.
On pension rules, the bill slows down funding transition rules and offers relief to multi-employer plans. In November, the White House circulated an informal list of objections to those provisions.
-By Henry J. Pulizzi and Martin Vaughan, Dow Jones Newswires; 202-862-9256; henry.pulizzi@dowjones.com
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Publié le 15 Décembre 2008 Copyright © 2008 Dowjones