Employment Law Resources


Oct 10 2013

Amendment Deadline Approaches for Defined Contribution Plan Suspension of 2009 Required Minimum Distributions

Defined contribution plans that elected to suspended required minimum distributions for 2009 under the Worker, Retiree, and Employer Recovery Act of 2009 (“WRERA”), must amend their plans to reflect the election before the last day of the plan year beginning on or after January 1, 2011.  This means that calendar year plans that suspended required minimum distributions for 2009 must be amended by December 31, 2011.


Under the Internal Revenue Code’s required minimum distribution rules, participants in qualified plans and IRAs are generally required to begin receiving minimum distributions of their benefits at least annually beginning in the calendar year after they attain age 70 ½, or, if later, retire.  As a result of the 2008 economic downturn, Congress allowed defined contribution plan sponsors to suspend required minimum distributions for 2009, provided the plan was timely amended to reflect the suspension.