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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29575
Experience:  Taxes, Immigration, Labor Relations
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If I failed to take a required minimum distribution

Customer Question

If I failed to take a required minimum distribution for seven years do I file seven 5329s for seven years and do I put the current years RMD on each or do I have to include the prior undistributed amounts also?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
You will need to take RMD distribution as soon as possible.If you will pay penalty for prior years - no need to amend - the IRS will calculate penalty for you.If you want to ask to abate penalty - file form 5329 with your current year tax return only.
Customer: replied 1 year ago.
I took all prior year distributions in 2015 so I read that no 5329 can be filed for 2015. Does this mean I file stand alone 5329s for just 2014 or for all prior years?
Expert:  Lev replied 1 year ago.
You must file Form 5329 if you did not receive the minimum required distribution from your qualified retirement plan.Generally - you need to file Form 5329 with your 2015 Form 1040 by the due date, including extensions, of your Form 1040.If you do not have to file a 2015 income tax return, complete and file Form 5329 by itself at the time and place you would be required to file Form 1040..What you need to complete - Part IX Additional Tax on Excess Accumulation in Qualified Retirement Plans - lines 52 - 55.Taxes on excess accumulation are calculated separately for each year in which RMD were required.If you are filing Form 5329 for a prior year, you must use the prior year's version of the form.Here are some forms. you are seeking a waiver - see instructions - last page - Waiver of tax. you took all RMD in 2015 - you woudl not need form 5329 for 2015 and woudl not be subject to additional tax.For 2014 - for instance - if you filed your tax return - and want to add form 5329 - you need to amend it using form 1040X - and attach form 5329If you did not file 2014 tax return and was not required to file - you would file stand alone 5329 for that tax year.