re: Inherited IRA Question

quote:

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OP needs to calculate the missed RMDs based on mom's scheduled. She needs to take, at a minimum, 2021 - 2023 immediately, and 2024 before year end. 2020, none was required. For 2019, she would need to take one only if mom did not before her 2019 passing.

OP will also need to file a 5329 penalty waiver request for each year of missed RMDs (the penalty is 50% for years before 2023, and 10% for 2023 and later if caught within a period of time). Be honest and explain exactly what happened, that you have fixed it, and you won't make this mistake again.

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This is what I am doing.

Y'all gave great advice that led me in the right path to finding my answer.

I called Fidelity.

They laid out the missed RMD amounts for 2019, 2021, 2022, and 2023.

I withdrew just a few dollars more to make it a more round number today.

I downloaded form 5329 for each year of missed RMDs and wrote a letter explaining breakdown of missed amount each year and will attach a statement showing the funds are now out of the IRA. Basically I just stated the truth. I didn't have an advisor, had no clue what an RMD was or that I needed to be taking them. And explained it won't happen again and I'll take RMDs on time.

Once it's all settled I'll just figure out how much I can take out to close the account in the next year or so and pay off my student loan and get the rest of the money into something I have more control and knowledge of with my advisor.

Thanks all.