missed RMD pending
Missed RMD for 2008 and filed a 5329 with letter of exp. Have not heard back from IRS, Preparing taxes Do I count the missed RMD amount for 2008? Or wait and do it for 2009 if denied?
Thanks
SC
Missed RMD for 2008 and filed a 5329 with letter of exp. Have not heard back from IRS, Preparing taxes Do I count the missed RMD amount for 2008? Or wait and do it for 2009 if denied?
Thanks
SC
Permalink Submitted by Alan Spross on Wed, 2009-03-18 22:25
You should take the missed RMD as soon as discovered. Showing evidence that you have corrected the error is the best insurance that the IRS will excuse the penalty for 2008. The RMD will be taxed in the year actually distributed. Remember that 2009 RMDs have been waived, so you will only have to take out the 2008 RMD this year and will be taxed only on the late 2008 RMD.
You do not have to include the penalty tax with your 2008 return, and can pay it separately in the unlikely event that the IRS denies relief.
Permalink Submitted by mk foss on Thu, 2009-03-19 01:13
If your letter of explanation did not indicate that you’ve withdrawn the missed amount, notify IRS of that fact if they should try to impose the 50% penalty.
Often it’s best to include Form 5329 (and explanation) with the 2008 return. Only send it separately if the 1040 has previously been filed.