Late RMD for inherited IRA
74 year old client inherited a regular IRA from her father who died in 2015. There was no RMD received for 2017. Should I just file Form 5329 by itself for 2017 and request an abatement of penalty and see what the IRS says? Does she still have the option of life-expectancy payout or 5 year lump sum? Any other ideas?
Mark C.
Permalink Submitted by Alan - IRA critic on Mon, 2018-07-09 18:51
She should take the late RMD right away, and then file the 5329 by itself outlining the “reasonable cause” for the omission. Then continue the life expectancy stretch as usual.