RMD from Inherited IRA

Submitted by Sandra Owens on Wed, 2019-04-24 13:42

The client simply forgot to take his RMD from an inherited IRA for the calendar year 2018. He has filed an extension for his 2018 taxes and wants to know what to tell his CPA. I suggested he first take the 2018 RMD. And then what do you advise? He has taken the RMD’s for previous years, just missed 2018.



Submitted by Alan - IRA critic on Wed, 2019-04-24 15:12

  1. Take the missed RMD ASAP.
  2.  File Form 5329 for 2018 with the extended return indicating the date and amount of the make up distribution, the reason for missing the RMD, and request to waive the penalty.
  3. There are only 4 lines to complete, but they are not intuitive – see the 5329 Inst final page for what to enter on those lines.
  4. The IRS almost always grants the waiver, but may not respond.

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