Archive for January, 2009

Drag your mouse over “About us” and then on the drop-down click on Quarterly Newsletter. Our Quarterly Newsletters give you insight into what is happening at Park Avenue/LPL and of course, an update from every staff member!

LPL Financial has applied for an extended deadline with the Internal Revenue Service. If the IRS grants this request, we expect to mail 1099 Tax Statements by February 15, 2009. If the request is not granted, the 1099 Tax Statements will be mailed by the standard deadline of January 31, 2009. The extention will not effect the 1099-R or 1099-Q.

We would like to inform you of recent legislative changes that were passed by both houses of Congress and signed by the President this past year. This legislation, entitled The Worker, Retiree and Employer Recovery Act of 2008 (The Act), is designed to help alleviate the financial burden facing investors who have seen their retirement savings shrink dramatically due to this year’s economic downturn.

The Act will provide relief during 2009 to two types of investors:

• Over age 70 ½ who hold retirement assets in 401(k)s, 403(b)s, 457(b)s and traditional IRA accounts.
• Holders of inherited assets still registered in the name of the decedent in 401(k)s, 403(b)s, 457(b)s and traditional IRA accounts.

It does so by suspending required minimum distributions (RMD), the mandatory withdrawals previously required of all defined contribution plan participants over age 70 ½.

The suspension of RMDs in 2009 allows you to forego or reduce asset liquidations that otherwise would have been required to generate your cash distributions. As a result of the RMD suspension, you need not liquidate assets at current price levels, and may continue to keep your holdings invested on a tax-deferred basis with no penalty. If you choose to do so, you retain the opportunity to await stronger market conditions for future liquidations. You are also free to continue to receive distributions according to your current schedule if you do not wish to make any adjustments in 2009 based on The Act. 

Please note, however, that the new tax law applies only to 2009. It does not provide a waiver of your 2008 RMDs or any 2008 distribution that has been delayed until April 1, 2009. We look forward to sharing ongoing updates regarding this important legislation with you as they become available.

You will continue to receive systematic distributions from your retirement account according to your current election. Should you wish to change your election to take advantage of the 2009 RMD suspension, please contact us and we will work with you to establish any changes you wish to make.