Beneficiary IRA – de minimis RMDs?
A new client in her early 50’s has a small (now $12K) ben IRA inherited in 2015. She took one $5K distribution several years ago. We’re checking as to whether RMDs were taken, which would now be in the $300 range. She has no recollection.
Is there a de minimis condition that would apply?
If not, and if it turns out that RMDs were not taken, please recommend how to set this right.
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2022-09-29 15:02
She could make up the missed RMDs (none for 2020), make a distribution, and then file Form 5329 for each of the missed years to request the penalty be waived. Taxes will be due for the year distributed.