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Missed RMD

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ByWJ

L1: Missed RMDI have a client, age 74 who missed her required minimum distribution withdrawal in December 2003 for $800. We noticed and took a withdrawal in February 2004 and we’ll take another one in December 2004. She already filed her tax return for 2003. Should she amend her 2003 taxes or let it go and hope the IRS does not catch it?2004-03-29 15:19, By: WJ, IP: [63.224.195.161]
L2: Missed RMDHello WJ:
Sorry to say that sticking one’s head in the sand is also called tax fraud. Not that anyone is going to jail for $800; however, you also do not want fraud penalties to apply.
The right solution is to file an amended return, filing Form 5329 and pay the excess accumulations tax which is 50%.
TheBadger
2004-03-29 15:31, By: TheBadger, IP: [38.116.134.130]

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