I have my IRA at Vanguard.
It is set up to transfer the correct RMD amount out of my IRA each year
at the end of December, and it has always worked perfectly until 2017. I found out this January that the
distribution was not made because a mailing Vanguard made to me in September
was returned as "undeliverable" and their protocol calls for the
account to be frozen in this circumstance.
Since my address has remained the same for the last 20 years it was
obviously a Post Office glitch. Since our home was inside the core disaster
area of September's category 4 hurricane Irma I have to assume that the mail
delivery problem was result of this hurricane. When in January (2018) I found
the RMD for 2017 wasn't made I transferred the correct amount out of the IRA
but it was now too late for Vanguard to count it as my RMD for 2017. Vanguard told me that to try to avoid the
50% penalty the IRS charges for a late RMD I should pay the penalty, submit
with my tax return a completed Form 5329 and a letter of explanation for the
Will my TurboTax Home & Business Take care of this for
me and how long is it likely to take the IRS to return the penalty?
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