I Forgot My IRA Required Distribution—How Do I Fix It?

Once you reach 70 years of age, you are required to take a minimum distribution from your IRA accounts (RMD).  Failing to do so will expose you to a 50% penalty on the amount not distributed.

You won’t need to pay the fine if:

1. You can show you had a reasonable cause for the failure to take an RMD distribution (such as an illness, bad advice, or dependence on the bank or other advisors)

2. You took steps to withdraw the amount as soon as you discovered the oversight.

Use IRS Form 5329, with a letter of explanation, requesting relief from the penalty.  Contact your tax preparer if you need help with this form.