Missed RMD 2008
If an individual did not take their 2008 RMD because of all the recent RMD confusion, should they take the distribution from their IRA now and then submit form 5329 with the request for a waiver? I would assume that they still need to take the RMD even if it’s late and they are paying the penalty. Also, is it required that the individual send in a check for the 50% penalty at the time that they submit the form 5329 or should they wait to hear back from the IRS on the outcome of their waiver request before paying the penalty?
Permalink Submitted by mk foss on Wed, 2009-01-07 18:22
The IRS requires that the missed distribution be taken before they can waive the penalty. So, the missed amount should be taken soon.
The IRS no longer requires that the penalty be submitted when you’re requesting a waiver. Pub 590 confirms that.
The easiest way to handle this is to include Form 5329 and the waiver request with the 2008 Form 1040. The distribution will be taxed in the year received, 2009, even though the amount is mentioned on the 2008 Form 5329.