2010 RMD missed
Any advice on corrective action is appreciated. 2010 RMD from qualified profit sharing plan was requested by advisor to investment company in December of 2010. Distribution was NOT made. Now it is January. Is there anything that can be done to avoid or minimize the 50% penalty?
Permalink Submitted by Alan Spross on Tue, 2011-01-18 17:07
Suggest following the instructions for requesting penalty waiver on final page of the 5329 Inst. But first take out the 2010 RMD and include a copy of statement showing the distribution with waiver request. Letter admitting omission by the responsible party will also help. Of course, there will now be two taxable RMDs in 2011 as a result.
IRS has been lenient in granting waivers, particularly if the excuse is sound. But if there is documented evidence of error by the PSP, a letter requesting reimbursement for damages should be considered as a backup in the event IRS does not waive the penalty.