RMD recourse options
I forgot to take out my RMD from one of my IRA’s, but I did on the other IRA for 2019. How do I avoid any penalties and can I correct this?
I forgot to take out my RMD from one of my IRA’s, but I did on the other IRA for 2019. How do I avoid any penalties and can I correct this?
Permalink Submitted by Alan - IRA critic on Tue, 2020-01-07 17:50
You can take your RMD in any combination from these IRAs. First, you must make up the late RMD and can do that from any of your IRA accounts. The late distribution will be taxable in 2020. Then you file a 2019 Form 5329 requesting the IRS to waive the penalty for being late. Cite a reasonable cause for the omission, but the IRS accepts nearly everything. While only 4 lines, the instructions for each line are confusing, so you will need to review the last page of the 5329 Inst to correctly complete those 4 lines.