missed stretch IRA RMDs
client set up stretch iRA in 2015- did not take any RMD for either 2016 or 2017. Can we send in the 5329 so we don’t have to taxably empty the account in 5 years. thx. Rick
client set up stretch iRA in 2015- did not take any RMD for either 2016 or 2017. Can we send in the 5329 so we don’t have to taxably empty the account in 5 years. thx. Rick
Permalink Submitted by Alan - IRA critic on Wed, 2018-06-13 17:36
Before filing the 5329 for each delinquent year, the late RMDs should be made up and so stated on the 5329 request for waiver of the penalty. The IRS indicated in PLR 2008 11028 that as long as the IRA agreement uses life expectancy as the default method, and all of them do, the life expectancy stretch can be restored by making up the delinquent RMDs.