RMD

Is there a remedy for someone that did not take an RMD if there are health issues. For instance, she did not get the RMD communication because she was hospitalized.



Definitely. Valid health reasons are accepted by the IRS for excusing the excess accumulation tax. Follow the instructions on p 6 of the 5329 Inst to request Waiver of tax. “RC” stands for reasonable cause when completing the 5329.

But the delinquent amount must be taken immediately upon discovery, and evidence of that should be included in the explanation for the omission.



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