Form 5329 Lines 55 - RMD Waiver Payment Question?

The confusion around Line 55 on Form 5329 is pretty common when dealing with RMD waivers. Here's how it works: When you're requesting a waiver for the missed RMD, you should enter $0 on Line 55, not the calculated penalty amount. This is because you're essentially telling the IRS "I acknowledge I missed my RMD, but I'm requesting you waive the penalty for these reasons..." Make sure you write "RC" (for reasonable cause) in the margin next to Line 55, and attach a letter explaining why you missed the RMD. Good explanations include medical issues, advisor errors, or simply misunderstanding the rules - especially if this is your first RMD. Also, since you've already taken the missed distribution, mention that in your letter along with the date you took it - this shows good faith correction which the IRS loves to see. You don't pay the penalty unless and until the IRS denies your waiver request. The vast majority of first-time RMD waiver requests are granted if you've already corrected the situation by taking the distribution.

I went through this exact same situation last year with my father's retirement account. We completely forgot about his RMD until tax time. I spent hours researching this and finally found a solution that worked perfectly with https://taxr.ai - they analyzed our situation and confirmed that putting $0 on Line 55 with "RC" written next to it was the right approach. Their system also helped me draft the perfect waiver letter that explained our circumstances. We included details about my father's health issues and showed proof that we corrected the missed RMD as soon as we realized the mistake. The waiver was approved without any issues! The letter is super important - don't just write a couple sentences. You need to show that you understand the mistake and have taken steps to prevent it from happening again.

Just wanted to update after using taxr.ai for my missed RMD issue. Their system helped me understand exactly what to do with Form 5329. I wrote out my explanation letter following their template, clearly explaining why I missed taking my $12,000 RMD (had health issues last year and simply forgot during the hospitalization). I put $0 on Line 55 with "RC" next to it as they suggested, attached my letter explaining the reasonable cause, and included proof that I had already taken the missed distribution in February 2024. Just got confirmation that my waiver was approved! No penalties at all! The best part was that their system explained everything in plain English rather than tax jargon. They showed me examples of successful waiver letters which made writing mine so much easier. Definitely worth it for the stress reduction alone.

If you're struggling to get through to the IRS to ask about your Form 5329 waiver or any other tax issue, I highly recommend Claimyr (https://claimyr.com). I wasted HOURS trying to reach someone at the IRS about my missed RMD situation last year. After multiple failed attempts waiting on hold for literally 2+ hours only to get disconnected, I tried Claimyr's service. They got me connected to an actual IRS agent in about 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly what I needed to do - enter $0 on Line 55, write "RC" next to it, and include a letter explaining my situation. They also told me that since I had already taken the distribution (even though late), my chances of getting the waiver approved were very good.

I need to eat my words about Claimyr. After posting my skeptical comment, I actually tried the service because I was desperate to talk to someone about my late mother's estate tax situation and RMDs from her IRA. It worked EXACTLY as advertised. I got a call back when they reached an agent after about 45 minutes (which is way better than the 3+ hours I spent trying on my own last week). The IRS agent was super helpful and confirmed that for missed RMDs where you've already taken the distribution, you should put $0 on line 55 with "RC" written next to it, along with a letter explaining the circumstances. Just filed the form yesterday with the letter attached. The agent said these first-time waiver requests are almost always approved if you've already corrected the situation by taking the distribution. Saved me potential penalties on a $15,000 RMD!

Just wanted to point out something important - make sure you're using the correct version of Form 5329 (the 2023 version for 2023 RMDs). Also, when you attach your explanation letter, be sure to include your name, SSN, and "2023 Form 5329" at the top of each page. The IRS is very particular about these details. A family member had their waiver request delayed because they forgot to label the attachment properly and the IRS couldn't immediately match it to their return.

Has anyone successfully gotten a waiver for multiple years of missed RMDs? My parents missed 2022 AND 2023 distributions from their IRAs (about $900 each year) and just realized it now. They've already taken both missed amounts out (in February 2024). Not sure if we should file separate 5329 forms for each year or combine everything.

I'm dealing with a similar situation but for my elderly father's 403(b) account. He missed his 2023 RMD of $2,400 and we just caught it last month. We've already taken the distribution to correct it. One thing I learned from our tax preparer is that you should also keep documentation showing when you took the corrective distribution - bank statements, 1099-R forms, etc. The IRS may ask for proof that you actually corrected the mistake, especially if there's a gap between when you missed the RMD and when you took it. Also, if your RMD was calculated based on December 31, 2022 account balance, make sure that calculation was correct in the first place. Sometimes people think they missed an RMD when actually their calculation was wrong and they didn't owe one. Worth double-checking the IRS life expectancy tables to be sure. The $67.50 penalty you calculated sounds right (10% of the shortfall), but definitely go with the $0 on Line 55 approach that others have mentioned. First-time missed RMDs with reasonable cause explanations get approved for waivers most of the time.

I had this exact same confusion when I missed my 2022 RMD. The key thing to understand is that Line 55 on Form 5329 serves two purposes depending on whether you're requesting a waiver or not. If you're NOT requesting a waiver, you calculate and enter the 10% penalty amount ($67.50 in your case) and pay it with your return. If you ARE requesting a waiver (which you should since you've corrected the mistake), you enter $0 on Line 55, write "RC" next to it, and attach your explanation letter. You don't pay anything upfront. Your calculation is correct - the penalty would be $67.50 if you had to pay it. But since you've already taken the corrective distribution and have reasonable cause, you should request the waiver by putting $0 on Line 55. Make sure your explanation letter mentions that this was an honest oversight, you corrected it as soon as you realized the mistake, and you've put systems in place to prevent it from happening again. The IRS is generally very reasonable with first-time RMD penalty waivers when people show good faith by correcting the situation promptly. Don't stress too much about this - it's a very common mistake and the IRS processes thousands of these waiver requests successfully every year.