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Failure to take RMD in 2021 - Is it too late to remedy?

  • 1.  Failure to take RMD in 2021 - Is it too late to remedy?

    Gold Most Valuable Member
    Posted 08-18-2022 06:39 PM

    Hi All,

    Failure to take RMD in 2021
    Taxpayer died in 2020 at age 90 1/2
    There were no designated beneficiaries and IRA passed into Estate
    No distributions were taken in 2021
    Executor asserts no RMDs are required in years 1-9 pursuant to the SECURE Act, and he is receiving this information from the IRA department at his brokerage firm
    I believe you use Form 5329 to calculate the penalty which is 50% of the undistributed RMD and it is reported on Form 1041 Schedule G Line 8 with "Form 5329" written on the line, but Form 5329 is not filed with the return. 

    Is this correct?

    If the "Proposed Regs" are not adopted can an amended return be filed to recoup the penalty paid?

    Is it too late to remedy the situation?

    If the amount is withdrawn before the extended due date of the return (9/15/2022), can the penalty be abated?

    Thanks for any help you can offer.

    Deborah J. Zelen, CPA

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