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Video instructions and help with filling out and completing Can Form 2350 Penalties

Instructions and Help about Can Form 2350 Penalties

Hello, my name is Katie Sonorous with Sonorous Wealth Management. In this video, we're going to talk about how to fix your missed Required Minimum Distribution (RMD). Let's get going. I always impose a penalty of 50% of your RMD amount, but in most cases, if you have good cause, the IRS will waive the penalty. The steps that you have to take in order to get relief from the IRS for the payment of the 50% penalty are as follows: First of all, step number one, you have to take out your RMD as soon as possible. The first thing you have to do as soon as you discover the missed distribution is to take it. On top of that, you have to remember to take separate checks for different years. Say it's the end of 2019 and you still have to take your 2019 distribution, but you realize you forgot to take a distribution for 2018 in the month of December. You can take two distributions, one for 2018 that you missed and one for 2019, but they have to be separate checks. It's very important because you have to include the check for 2018 with your explanation that you're going to be sending to the IRS. The next step is to file the IRS Form 5329. What happens if you have multiple missed RMDs? Let's say you have an RMD for 2018 and 2017. You have to file a separate Form 5329 for each missed year. If you're married and both you and your spouse forgot to take your RMDs during the same year, each spouse must file their own Form 5329, even if you're filing jointly. It still has to be a separate form for each spouse. If you failed to take RMDs from multiple accounts, let's say...