missed MRD on IRA


D

Dee

I just figured out that I have not been taking the MRD on an
IRA that I've inherited. The year after date of death was
2003. I have figured out the MRD for each of the years
2003-2005 and took out that amount yesterday.

IRS website says to use the form 5329 for each of the years
missed. I don't necessarily have to amend the 1040s if
there are no other changes; I could just send in each 5329.
Would it be a good idea to send them separately with
separate checks for payment of each year missed, or would it
be okay to send them all together along with my 1040 for
this year?

Also, I know there will be a 50% penalty assessed on the
amount. Does anyone know if interest is also assessed?

Thanks, Dee
 
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T

thetaxdon

I would send them separately. Three envelopes, one for each
year. Use the 2003 and 2004 forms and don't forget to put
your address on the 5329 pg 1 and your signature and date on
pg 2. Also follow instructions on what to write on your
checks. In a few weeks, send a letter requesting the
penalty be removed and refunded and describe how you
inadvertently missed the MRDs and how you took prompt action
as soon as you discovered the error. If you don't get a
response in 10 weeks, resend the letter, and/or make phone
calls requesting a response.

Don in Colorado
 
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