IRS Form 5329 Additional Tax on Excess Accumulation in IRA
I forgot to take my RMD for 2016 so I took the RMD from my investment account this morning (1/3/17). I am filing form 5329 to request a waiver of the 50% penalty. Does anyone have any information on whether the IRS typically grants such requests without a hassle, or do they typically make it hard to grant a waive?
Permalink Submitted by Alan - IRA critic on Tue, 2017-01-03 20:48
The IRS typically grants the waiver in cases of self reported delinquency after the late RMD amount has been distributed. Chances improve with better “reasonable cause” explanations as opposed to “I forgot”, but the latter will often be accepted as well. You may or may not get a response, but if you do not that is good news except that you are on ice for a longer time. Be sure you complete the 5329 correctly, there are only 4 lines but what to enter is not intuitive. See these 5329 Inst on the final page describing what is to be entered. I assume your “investment account” is your IRA account. https://www.irs.gov/pub/irs-pdf/i5329.pdf