@Matt133 wrote:
Thank you very much for the in-depth reply.
If the RMD would have been extremely small, is the penalty on a portion of the specific RMD value I missed for 2021?
Also, if the penalty would be insignificant, can I skip the 5329 altogether for 2021 and pay the penalty in 2022?
Thank you again,
Matt
See my post above. You should not pay the penalty at all but ask for a waiver as explained above. The penalty is huge - 50% of the amount of the missed RMD - if the RMD was $1000 then the penalty would be $500, but nobody pays it because the IRS almost always grants the wavier. In any event the 5329 for 2021 must be filed, it cannot be deferred to a later year.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
