RMD bank calculation error
My father, age 88, has a 250K IRA -CD at a local bank. The bank has admitted that they incorrectly calculated his RMD for the last two years. They withdrew $1,000 too much in 2010 and $2,400 too much in 2011 (he does not need this money for his expenses ). Is there anyway to get this money back into the IRA since it was a bank error? Is it even worth it, as he would probably have to file amended tax returns? In the future we know not to rely on their calculations and will double check everything. Thanks for any input/ideas.
Permalink Submitted by Alan Spross on Tue, 2012-07-03 00:23
Well, if there is documentation to prove this was entirely the bank’s fault, the IRS might allow rolling the excess funds back to the IRA pursuant to a letter ruling request. However, due to the modest amount, the expense of preparing the request and the time expended waiting for a ruling, I doubt that it is worth the effort to pursue it.
Permalink Submitted by Cathy Merrill on Wed, 2012-07-04 01:56
Thanks for your reply. I agree the amount is not significant enough to pursue such a course of action. I just wanted to be sure there wasn’t an easy fix I was missing.