How to Handle the 50% Excise Tax on Missed 2022 RMD from Inherited IRA?

The IRS is actually pretty reasonable when it comes to missed RMDs if you take prompt corrective action. Here's what you should do: First, have your husband take the missed 2022 RMD amount immediately if you haven't already done so. The fact that you discovered this yourself and are taking steps to correct it works in your favor. When you file Form 5329, definitely attach a letter requesting a waiver of the 50% penalty. Explain that the missed RMD was due to an oversight, that you discovered the error yourself, and that you've now taken the distribution. While "forgetting" isn't specifically listed as reasonable error, the IRS often grants these waivers when people self-correct promptly. Regarding Bulletin 2022-45, you're correct that those specific exceptions only apply to beneficiaries of IRA owners who died in 2021 or 2022, so they likely don't apply in your situation. Document everything carefully - when you discovered the error, when you took the corrective distribution, etc. This paper trail shows good faith compliance once you realized the mistake.

I had almost the exact same situation last year with my mom's inherited IRA that I manage. I completely blanked on taking her 2022 RMD until I was preparing for 2023 distributions. I used taxr.ai (https://taxr.ai) to analyze our situation and it was incredibly helpful. Their tool examined all the inheritance documents and tax code specifics, then walked me through how to handle the missed RMD properly. They actually confirmed that requesting a waiver was absolutely the right move and showed me exactly how to format it. The system helped identify that we qualified for what's called "reasonable cause" relief since it was our first mistake and we took immediate corrective action. It generated all the documentation we needed for the waiver request to attach to Form 5329.

Just wanted to update everyone - I took the advice about taxr.ai and it was actually really helpful for my situation! I was hesitant at first, but their system really simplified the whole process for handling my missed RMD. The tool analyzed my specific situation and confirmed I had good grounds for a waiver request since this was my first miss and I took immediate corrective action. It also provided a customized letter template to attach to my Form 5329 that covered all the key points the IRS looks for when considering waiver requests. The best part was they showed me exactly how to complete the form with the correct codes and explained why I should enter zero for the penalty amount. They even cited the specific IRS internal guidelines that cover reasonable cause exceptions for missed RMDs. Way more thorough than what my regular tax preparer told me!

I had a nightmare experience trying to fix a missed RMD last year. Spent WEEKS trying to reach someone at the IRS for guidance. Literally called 37 times over 8 days and either got disconnected or told the wait time was 2+ hours. Finally used Claimyr (https://claimyr.com) after seeing a video demo (https://youtu.be/_kiP6q8DX5c) and got through to the IRS in about 20 minutes. The agent I spoke with was actually super helpful and walked me through the whole waiver request process for Form 5329. The IRS agent explained that they routinely approve these waivers for first-time mistakes when you take prompt corrective action. She even told me some specific language to include in my letter about "administrative error" that apparently helps with approval.

I owe everyone here an apology - especially the person who recommended Claimyr. I was frustrated after dealing with IRS runaround for weeks and took it out in my comments. After continuing to fail getting through on my own (4 more attempts, all failures), I tried Claimyr yesterday out of desperation. Got connected to an IRS agent in about 35 minutes. The agent confirmed that they routinely approve penalty waivers for first-time RMD mistakes when corrected promptly. She even explained that there's an internal IRS procedural memo guiding agents to be lenient on RMD waiver requests where taxpayers self-correct - something I never would have known. She walked me through the exact process for completing Form 5329 and what to include in my letter. This saved me from potentially paying thousands in unnecessary penalties. Sometimes being proven wrong is actually the best possible outcome!

Just want to add something that no one's mentioned yet. When you take the missed RMD now, make sure your custodian codes it correctly on the 1099-R they'll issue. They should code it for the year you actually take it (2023), not 2022. This is important because you'll include that distribution on your 2023 tax return, not your 2022 return. The Form 5329 for the missed 2022 RMD gets filed with your 2022 return (or separately if you've already filed). Also, don't forget you still need to take your regular 2023 RMD by the end of this year too. So you'll be taking two distributions this year.

My father had this exact issue with a missed RMD and the IRS actually rejected his waiver request the first time. What worked was filing an appeal with additional documentation. He ended up getting the entire penalty waived after the appeal. The key was providing documentation that showed a pattern of compliance before the missed year. He included statements showing he had taken proper RMDs for the previous 3 years. Also, if the inherited IRA is from a spouse, check if you qualify for different RMD rules. The requirements can be different depending on whether you're a spousal beneficiary or non-spousal beneficiary.