I sold enough funds to cover my IRA RMD on time. I called my broker today (April 12) and asked why the April statement didn't show I covered the RMD. I expected the broker to put the funds in a cash account so I could invest elsewhere. Not knowing, the brokerage kept the cash funds in the IRA account. I thought it would go into a separate non-IRA cash account.
Now I'm past the April 1 deadline (I'm 72). I expected the withdrawal to count toward my CMD but apparently it didn't. I'm told that the cash withdrawn had to go to a bank. Of course I want to keep my taxes honest but it looks like I'll have to take a 50% tax on my deduction maybe next year. Is there a way to correct the withdrawal of my CMD?
If I wrote the IRS, who do I send the letter to?
