A:

When you missed your required minimum distribution (RMD), you should have sent in a letter of explanation and filed IRS Form 5329 with your tax return. If you did not do so, you will still need to file your Form 5329 and attach the letter of explanation.

The letter should include an explanation of why you missed your RMD deadline, and explain when you distributed the amount from your retirement account. It should also include a request to the IRS to waive the 50% excess accumulation penalty. Once that is sent in, you can do nothing other than wait to see if the IRS denies your request. If you do not receive a response, it is usually an indication that your request has been approved.

For more insight, see Missed Your RMD Deadline? What To Do and Retirement Plan Tax Forms You May Need To File - Part 1.

This question was answered by Denise Appleby
(
Contact Denise)

RELATED FAQS
  1. Can I defer my RMD or stop it?

    I am 76 years old. This year, I will have W2 income of $100,000 plus a SS income of $45,000. ... Read Answer >>
  2. Is a 403(b) treated like a 401(k) with regards to not having to take the RMD if you ...

    I have a question regarding the treatment of 403(b) versus 401(k). I have a client who is 70 1/2 and took her first RMD last ... Read Answer >>
  3. When should a surviving spouse over 71 take their first RMD after rolling over an ...

    My husband passed away on March 4,2015 at the age of 67. I originally set the IRA up as being an inherited IRA since I was ... Read Answer >>
  4. When I reach 70 1/2 years old, do I have to start taking out RMD?

    My father has me as the annuitant on one of his annuities. ... Read Answer >>
  5. Should I start taking my RMD based on the amount in my account when I turn 70.5?

    Because your balance may have changed from December 31 to the date you reach age 70.5, using that balance may result in an ... Read Answer >>
  6. Should I take my RMD early in the year or wait until the end of the year?

    It is June and I have not taken my RMD. Should I let the funds grow until end of the year or take average withdrawals until ... Read Answer >>
Related Articles
  1. Retirement

    3 Steps To Take If You Miss Your RMD Deadline

    If you fail to take the required minimum distribution from your retirement account, you need to take proper steps.
  2. Retirement

    Preparing For Retirement Plan RMD Season

    Paying taxes is inevitable - that's why you need to learn about the rules for required minimum distributions.
  3. Retirement

    An Overview Of Retirement Plan RMDs

    Make your deadlines for required minimum distributions and save more of your nest egg.
  4. Retirement

    5 Retirement Plan Moves To Make Before Year-End

    Make sure all your loose ends are tied with these simple reminders and tips for your plans.
  5. Retirement

    6 Important Retirement Plan RMD Rules

    Paying taxes is inevitable - that's why you need to learn about the rules for required minimum distributions.
  6. Financial Advisor

    Best Ways to Avoid RMD Tax Hits on IRAs

    If you want to avoid hefty tax penalties, read this cheat sheet on IRA required minimum distributions.
  7. Retirement

    Strategic Ways To Distribute Your RMD

    We give you some tips on preserving your nest egg in the face of unavoidable withdrawals.
  8. Personal Finance

    Avoiding Mistakes In Required Minimum Distributions (RMD)

    If you don't calculate your required minimum distributions accurately, you might have to pay an excise tax.
  9. Financial Advisor

    Advisors: Clients Must Take First RMD by April 1

    For clients required to take their first required minimum distribution from a retirement account, April 1 is a key deadline not to be missed.
  10. Financial Advisor

    Top Tips for Advising Clients on RMD Strategies

    Required minimum distributions are a fact of life for those 70.5 and older. Here's how to implement the best strategies for clients.
RELATED TERMS
  1. Required Minimum Distribution - RMD

    The amount that Traditional, SEP and SIMPLE IRA owners and qualified ...
  2. Confirmed Letter Of Credit

    A second guarantee, in addition to a letter of credit, that commits ...
  3. Form 4506

    A tax form distributed by the Internal Revenue Service (IRS) ...
  4. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a ...
  5. Shareholder Letter

    A shareholder letter is a letter written by a firm's top executives ...
  6. Demand Letter

    A letter sent to a debtor requesting payment. A demand letter ...
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center