President Bush signed legislation today that offers a measure of tax relief to retirees next year. The Worker, Retiree, and Employer Recovery Act was also passed by both houses of Congress earlier this month.

The bill allows retirees to avoid making withdrawals from depleted 401(k)s, IRAs, and 403(b)s in 2009. But seniors over age 70 ½ need to take withdrawals this year by December 31 or face an excise tax of 50 percent of the amount that should have been withdrawn plus income tax.

Remember this does not impact your MRD this year- you'll have to take distributions from retirement accounts for 2008.