RMD problem
Robert is 75 and did not take any RMD’s from his IRA since turning 70.5. We just discovered this while preparing his 2018 return and immediately brought it to his attention. The cumulative amount will be distributed this week and only amounts to about $7,000 over the 5 yr period that he missed. What is the best way to make this right and appeal to the IRS for waiver of penalties? Thank You
Permalink Submitted by Alan - IRA critic on Sat, 2019-04-06 20:09
He should complete a Form 5329 for each delinquent year, bunch them up and send them together to his current IRS center. There are only 4 lines to be completed, but they are not intuitive and therefore the last page of the 5329 Inst should be reviewed for what goes on each line. His “reasonable cause” explanation should indicate that all late RMDs have been distributed and he can say that he was not aware he had to take annual RMDs. The 7,000 will be taxable in 2019.