Temporary waiver of required minimum distributions (RMDs) for 2009. For 2009, you are not required to take an RMD from your IRA or employer-provided qualified retirement plan. This waiver applies to participants in these plans as well as beneficiaries. The waiver also applies to those individuals who turn 70½ in 2009 and delay their 2009 RMD until April 1, 2010. This waiver
does not apply to RMDs for 2008, even for individuals who turned 70½ in 2008 and choose to take the 2008 RMD by April 1, 2009.
If you received a distribution in 2009 that would otherwise be an RMD, you can roll over that amount into an eligible retirement plan within 60 days of the distribution. The plan administrator is permitted, but not required to offer a direct rollover of that amount. Also, the distribution is not subject to the 20% income tax withholding requirement.
Rollover of nontaxable amounts. You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another qualified retirement plan that is a qualified employee plan or a 403(b) plan, or to a traditional or Roth IRA. The transfer must be made either through a direct rollover to a qualified plan or 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional or Roth IRA.
If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution.
Any after-tax contributions that you roll over into your traditional IRA, become part of your basis (cost) in your IRAs. To recover your basis when you take distributions from your IRA, you must complete Form 8606, Nondeductible IRAs, for the year of the distribution. For more information, see the Form 8606 instructions.