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New Member
posted Feb 21, 2022 12:43:10 PM

I didn't withdraw a RMD on an IRA in 2021. It was an oversight. How can I remedy that so I don't get a tax penalty from the IRS?

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2 Replies
Level 3
Feb 21, 2022 12:54:34 PM

Hi H,  You need to withdraw the correct RMD immediately (have your broker check the RMD number) from what I've read (see link).  I did not think the IRS would waive the huge 50% penalty, but apparently they may.  Be sure to put multiple calendar reminders on your smart phone for this year's RMD.  Don't wait until the last day to do it either.

 

You may have to provide proof of one of the excuses listed by Kiplingers.  I'm not an accountant, but this would be a place to start your reading.  You will probably want to pay an accountant to help with this, unless you understood what was required and forgot.  "I didn't know" or "I forgot," probably won't be sufficient excuses, but you never know!  It's always worth a try.  https://www.kiplinger.com/article/retirement/t045-c032-s014-avoiding-the-50-penalty-on-overlooked-rmds.html 

Expert Alumni
Feb 21, 2022 1:22:39 PM

If you just turned 72 in 2021 (born after Jun 30, 1949) then you have until April 1, 2022 to take the RMD.

 

If this was your first year to take the RMD then you will have to take the RMD as soon as possible. 

 

"The penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329 PDF and attach a letter of explanation." (IRS)