Last year, Uncle Sam took pity on retirees whose savings were so hard-hit by the slump in stock prices. To protect their depleted nest eggs, they did not have to take distributions from most IRAs, 401(k)s or other employer-based retirement accounts.

This year, the required minimum distributions are back. Annual withdrawals are mandated after the participant reaches 70 1/2. Payouts are generally taxed as ordinary income, except for the portion that comes from after-tax contributions. Those who are still working after 70 1/2 can hold off withdrawals from the company plan, but not from the IRA. The deadline is December 31.

Your required minimum - you can take out more if you want - is based on the December 31, 2009 balance in the retirement account, divided by your life expectancy. The IRS, and many brokers, offer charts to help. There are special rules for those with young spouses and those who inherited their IRA funds.

Need help with the rules and requirements? Let us put you on the right path. Talk to us at G M Hietpas CPA, LLC.