Form 5329
Do I need to fill out/file Form 5329 if I took the required minimum distribution on the IRAs I inherited from my mother?
Thanks.
Do I need to fill out/file Form 5329 if I took the required minimum distribution on the IRAs I inherited from my mother?
Thanks.
Permalink Submitted by Al Fry on Tue, 2008-04-08 22:10
When you get your 1099-R, Box 7 should be coded as a 4-Death to show the payment is not subject to the 10% penalty. If not, and if the custodian refuses to correct it, THEN you would file the 5329 to claim the exception.
Permalink Submitted by Alan Spross on Wed, 2008-04-09 05:42
You would need the 5329 if either you or your mother prior to her death did not take a required RMD and a request to excuse the excess accumulation penalty is needed. This frequently occurs, but the IRS has been very amenable to excusing the penalty and accepting most plausible reasons as “reasonable cause” for the oversight.
See Pub 590, p 57 and/or Inst for Form 5329, p 6 if this is an issue for you.
With respect to an early distribution penalty, see Al’s post.