• Last year, Congress passed a law that provides for a one year suspension of required minimum distributions, which means you don’t have to take a distribution in 2009 if you don’t want to.
• You’re also required to take an RMD from 401(k), profit sharing and other qualified retirement plans, so check with your accountant to determine whether your accounts are subject to the RMD rules.

Automatic Distributions. Because the penalty tax for missing a distribution is so high (50 percent of the amount you were supposed to distribute), many people have implemented automatic distribution features on their IRAs.   And often those distributions are made in the fourth quarter of the year. Generally, this is a good idea and ensures you don’t miss your RMD.

But if you don’t need the RMD this year, then you’ll most likely have to inform your IRA custodian that you want to suspend the automatic distribution for 2009. Otherwise, you may end up paying taxes you could have avoided.

• But because the RMD has not been suspended for 2010, if you like the automatic RMD feature, you want to be sure that it is suspended for 2009, but still in place for 2010.

CBSMoneywatch.com Year End Tax Saving Tip For Retirees