Permalink Submitted by Jose Morales on Thu, 2017-06-22 23:36
The first step is to calculate the amount of the missed RMDs and take a distribution for that amount immediately. Then take steps to make sure they are not missed going forward, such as establish an automatic distribution with the Custodian. When the individual files their taxes they will complete form 5329 to report the missed RMDs and calculate the penalty owed, however if there is a reasonable excuse for missing the distributions you will enter “$0” for penalty owed and provide an explanation as to why the distributions were missed and the steps taken to make sure they are not missed again. The IRS will make a determination as to whether the penalty will be waived or not, however in recent years they have been much more forgiving for many things than I remember them being when I first started working with retirement plans.
Permalink Submitted by Jose Morales on Thu, 2017-06-22 23:36
The first step is to calculate the amount of the missed RMDs and take a distribution for that amount immediately. Then take steps to make sure they are not missed going forward, such as establish an automatic distribution with the Custodian. When the individual files their taxes they will complete form 5329 to report the missed RMDs and calculate the penalty owed, however if there is a reasonable excuse for missing the distributions you will enter “$0” for penalty owed and provide an explanation as to why the distributions were missed and the steps taken to make sure they are not missed again. The IRS will make a determination as to whether the penalty will be waived or not, however in recent years they have been much more forgiving for many things than I remember them being when I first started working with retirement plans.
Permalink Submitted by tomd37 on Fri, 2017-06-23 00:53
Just remember that there was no required minimum distribution required for tax year 2009. Am not sure to what eight years you refer. Tom D.