Health problems caused me to take my RMD after the deadline. Can I appeal my case to the IRS?

By Denise Appleby AAA
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. Will I pay taxes on my Social Security payouts?

    Find out if you're one of the people who has to pay federal income taxes on the Social Security benefit you receive.
  2. Can I deduct my Individual Retirement Account (IRA) contribution on my tax return?

    Whether you can deduct IRA contributions on your tax return depends on the type of IRA you have, your participation in an ...
  3. Can I contribute to a Roth IRA and still participate in my employer-sponsored retirement ...

    Find out the rules and limits on contributing to both a Roth IRA and employer-sponsored retirement plan.
  4. At what age will I be eligible for the maximum Social Security payout?

    The year you choose for collecting your social security will play a large part in determining how much money you'll receive ...
RELATED TERMS
  1. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  2. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  3. Peri-Retirement

    A term for the period of time leading up to actual retirement. ...
  4. MyRA

    A new tax-advantaged retirement account that President Barack ...
  5. Provident Fund

    A compulsory, government-managed retirement savings scheme used ...
  6. Rollover IRA

    A special type of traditional individual retirement account into ...
comments powered by Disqus
Related Articles
  1. 5 Ways To Stretch Your Retirement Budget
    Budgeting

    5 Ways To Stretch Your Retirement Budget

  2. It's Never Too Early To Start Saving
    Savings

    It's Never Too Early To Start Saving

  3. 5 Tax(ing) Retirement Mistakes
    Retirement

    5 Tax(ing) Retirement Mistakes

  4. Payroll Deductions Pay Off
    Retirement

    Payroll Deductions Pay Off

  5. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

Trading Center