Missed several RMDs
I have missed taking RMDs for 7 years from a TIAA Traditional 403(b) plan. The only way I can take the missed RMDs is to establish a Transfer Payout Annuity which pays out 10 annual payments, of which the the first 3 payments will account for all of the missed RMDs. Should I file IRS 5329 forms now for the missed 7 years, and a waiver letter explaining why I need to withdraw the missed RMDs over the next 3 years.
Permalink Submitted by Alan - IRA critic on Sat, 2018-07-21 22:22
This does not sound right. The plan has an obligation to meet RMD requirements, and to have notified you what your RMD was when RMDs began. Further, there is a good chance the IRS will only waive the penalty for missed RMDs if you file the 5329 after you have taken the late distributions. You could try filing them right after the RMDs were made up if this turns out to be the only option. But I would discuss this with supervision, that you need an immediate distribution of the amount of missed RMDs plus the 2018 RMD. Do you have any other 403b contracts that you could use the aggregation rules to catch up the RMDs right away?