Proposed Changes to Required Minimum Distributions

July 21, 2009

Legislation that would alter Required Minimum Distributions (RMD) from pension plans has been introduced in both the Senate and the House. H.R. 2021, led by Rep. John Boehner (R-OH), would extend the suspension of RMD requirements through 2012. It was referred to the House Committee on Health, Employment, Labor, and Pensions.

Legislation from Sen. Olympia Snowe (R-ME) would grant a waiver of RMD payments through 2010. S. 157 was referred to the Committee on Finance.

A bill to permit 2008 RMD payments to be repaid, H.R. 939, sponsored by Rep. Rodney Frelinghuysen (R-NJ), was referred to the House Committee on Ways and Means.

Rep. James Sensenbrenner (R-WI) introduced a bill that would increase the age when RMD payments are required to 75 from the current 70 1/2. H.R. 2637 would also extend the waiver of payments through 2010. It was referred to the House Committee on Ways and Means.

Without significant support from outside interest groups such as AARP, any legislation altering current RMD regulations is unlikely to see any action in this Congress.