Personal Finance (Not Investing) • Vanguard conversion to brokerage account and RMD

Have VG make the corrected RMD
File 5329 with a short letter that states that an adminstrative issue with the custodian resulted in inadvertant failure to make the 2023 RMD and that the issue has been corrected. Request waiver of penalty. Keep the letter short, direct and don't feel compelled to provide copious detail.

The IRS will grant the waiver. We had a similar problem on an inherited IRA years ago and the penalty was waived. I've filed numerous waivers for TaxAide clients with similar results.

Note: the 2023 and 2024 RMDs will be reported on the 2024 tax return.

Would you explain the part in bold?

Vanguard is already taking action to have the 2023 RMD taken out.

I think what he's trying to alert you to is that the 1099R for 2024 will include both the late 2023 and the timely 2024 distributions since they were both taken out in 2024.

Statistics: Posted by Nyc10036 — Tue Feb 27, 2024 4:31 pm — Replies 9 — Views 533