Missed RMD Payments: It’s Not Too Late
If you missed taking your Required Minimum Distribution (RMD) withdrawals from your Individual Retirement Account (IRA) and you are over 72, there are a few steps you should take to rectify the situation.
Next, you should withdraw the missed RMD amount as soon as possible. It is important to note that if you do not withdraw the missed RMD by the end of the year, you will be subject to a 50% excise tax on the amount that should have been withdrawn.
What About The Previous Missed Year?
If you have already withdrawn your RMD for the current year, you will need to withdraw an additional amount to make up for the missed RMD payment from the previous year.
It’s also important to note that you must take your RMD each year after you reach 72 and the IRS has a form for that. So, you should consult your tax advisor and consider filing Form 5329 with your tax return, reporting the missed RMD payment and the additional 50% excise tax.
Consult With A Professional
It is best to consult with a tax professional or financial advisor to ensure that you are meeting all of the necessary requirements and to help you avoid any penalties.
Also, it’s important to note that at the end of the day RMD payments are the responsibility of the account owner and not the financial institution, financial advisor, or tax professional.