Inherited IRA and missed RMD's - Ed Slott and Company, LLC

Submitted by Marina Ferrone on Mon, 2018-05-21 22:02

Taxpayer inherited two IRA’s from father who passed in 1996 at 68 years old and has never taken an RMD. How can this be corrected?

Permalink Submitted by Alan - IRA critic on Mon, 2018-05-21 23:38

Take a full distribution of the IRA since the 5 year rule applied. If taxpayer wants the penalty to be waived, he should file the 2001 edition of Form 5329 for each account and request that the penalty be waived for reasonable cause. See the last page of the 5329 Inst for completion instructions. The full distribution will be taxed in 2018 per 1099R.
https://apps.irs.gov/app/picklist/list/priorFormPublication.html;jsessionid=LZMu6zkTAqdNf4sF9vcVLgYmiXaeNadk5KQKippN?indexOfFirstRow=25&sortColumn=sortOrder&value=5329&criteria=formNumber&resultsPerPage=25&isDescending=false

Inherited IRA and missed RMD’s