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 Required Minimum Distributions and Residential Energy Credits

 

Congress recently passed legislation that suspends required minimum distributions from IRAs, 401(k) plans and similar retirement accounts for 2009.  You will not be required to take any distributions from these plans this year.  Congress passed this legislation to address the hardship faced by many retirees who otherwise would be forced to take distributions when their retirement savings are at their lowest point in years.

 

In addition, taxpayers can also take advantage of residential energy credits in 2009.  This credit was suspended for 2008 but was reinstated in 2009 with the passing of the Emergency Economic Stabilization Act on October 3, 2008.  There is a maximum credit of $500 for non-business energy improvements such as insulation, exterior windows (credit capped at $200), exterior doors, furnaces and water heaters.  It applies to property bought and placed in service in 2009 only.

 

Thank you for your time and attention to this matter.  Should you have any questions, please contact our office at 234-1100.

 

 

Bowers & Company, CPAs, PLLC

1200 AXA Tower I

100 Madison Street

Syracuse, NY  13202

(315) 234-1100

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