F5329 abatement for late RMD for overseas American
Non-spouse beneficiary of an inherited IRA did not take the 2015 RMD on time but is making the withdrawal. Can the fact that the custodian didnt advise the RMD amount be used for the statement with F5329?
Permalink Submitted by Alan - IRA critic on Tue, 2016-05-31 17:13
The beneficiary should use the best reason that could apply with the 5329. That said, this is not a very good “reasonable cause” since the IRA custodian is not required to determine the RMD amount, only the value of the IRA on the prior year end. Even with a weak reasonable cause, the IRS will frequently waive the penalty when the beneficiary self reports the delinquency and makes up the late RMD.