RMD on beneficiary IRA
My sister assumed that the bank that holds a beneficiary IRA will send an RMD for 2007, but just realized in preparing her taxes that they did not. If she were to request a check now, would it count towards 2007 distribution? What’s the best course of action at this point.
Thank you.
Permalink Submitted by Alan Spross on Mon, 2008-03-24 04:43
She should take the late RMD now, and then file a 5329 with her 2007 return and ask to have the penalty excused.
See p 6 of the Inst for Form 5329. The IRS should waive the penalty, but she will have two taxable distributions in 2008.