No Relief for 2008 RMDs
Treasury apparently ended all speculation yesterday, so 2008 RMDs need to be taken. I would not ignore the requirement, but neither would I be very worried if I had to file a request to excuse the penalty. IRS has been lenient on this anyway, and with all the confusion and last minute legislation and rulings, they know many taxpayers will fail to take the 2008 RMD and have to request the penalty exception.
http://www.forbes.com/2008/12/18/rmd-irs-treasury-pf-retirement-in_jn_12…
Permalink Submitted by Jose Morales on Fri, 2008-12-19 22:26
And the proper way for an individual to request an exemption to the penalty is by filing form 5329 along with their taxes, listing the penalty that they owe and attaching their reasoning for an exception. Financial institutions should not be submitting corrected 1099Rs to the IRS after January 1st just because the client made an “mistake.”