http://www.irs.gov/retirement/article/0 ... ,00.html#9Can the penalty for not taking the full RMD be waived?
Yes, the penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329 and attach a letter of explanation. See the instructions to Form 5329 for all the rules on how to apply for this waiver.
willardx wrote:I have a sensitive question, not sure how prevalent it is, so I would appreciate any feedback:
4. I have been working with VG to transfer all funds into new accounts, including moving the IRA funds to 2 beneficiaries, which was taking a long time.
1. My father-in-law (FIL) set up to take his MRD in late December
2. FIL passed away last April, 2011.
5. 2011 ends without my FIL taking his MRD (or any beneficiary doing the same).
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