Tax Law (Questions About Taxes)/RMD distribution


I failed to remove the Required minimum distribution from my IRA.
When I realized this the amount of $628.75 was removed on 1-4-13.
What do I do now to avoid a penalty?

You need to do nothing. As long as you made a corrective distribution as soon as you discovered the error, you should be OK. If you made this only a few days after the end of the year, if the IRS writes to you about the missed RMD, you can request an abatement of penalty and they usually will waive the penalty.

The normal penalty is 50% of the amount of the RMD.

However, I doubt the IRS will contact you about this relatively small amount.

Tax Law (Questions About Taxes)

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Randall Klein, MBA, EA


I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.


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