IRA RMD for 2008 wasn’t taken!!!
An $800 IRA rmd wasn’t taken for 08. If it is taken now, will there be a penalty or will they allow the “swap”? What should I do?
An $800 IRA rmd wasn’t taken for 08. If it is taken now, will there be a penalty or will they allow the “swap”? What should I do?
Permalink Submitted by Al Fry on Thu, 2009-01-08 03:11
It should be taken ASAP. Then when 1040 is filed, file a 5329, calculating the penalty ($400 ?), and asking for a waiver, explaining why the RMD was late (e. g. senility, bad advice, out of the country, etc).
Permalink Submitted by Alan Spross on Thu, 2009-01-08 04:47
Follow the instructions on p 6 of the Inst for Form 5329. If done correctly, the chances of the waiver are excellent, particularly this year when there has been so much confusion and talk about waiving 2008 RMDs.