How to mail in Form 5329 and a letter of explanation for missed Required Minimum Distributions (RMDs)?

Yes, you can definitely submit Form 5329 with a letter explaining your situation for the missed RMDs. Here's what you should do: Complete Form 5329 for the tax year you missed the distributions (2023). On line 54, enter the amount of the missed RMD for each account. On line 55, enter the 50% excise tax amount. Here's the important part - on line 56, enter "RC" (reasonable cause) and enter zero as the penalty amount if you're requesting a waiver. Attach a detailed letter explaining your health issues that prevented you from taking the RMDs. Be specific about dates, treatments, and how this affected your ability to handle financial matters. Make sure to mention that you've already corrected the mistake by taking the distributions now. Mail the Form 5329 and your letter to the same IRS address where you'd normally send your federal tax return. You don't need to wait until filing your 2024 taxes - you should send this separately as soon as possible.

I went through this exact situation last year and found a great tool that helped me navigate it. I used https://taxr.ai to analyze my situation and generate the proper Form 5329 with the correct codes. It actually pointed out that I needed to use "RC" in line 56 (which I would've missed otherwise) and helped me craft a proper explanation letter. The tool analyzed my specific situation and showed me exactly what to include in my explanation letter - like mentioning the fact that I corrected the mistake as soon as I discovered it (which apparently helps with getting the penalty waived). Without this guidance, I would've just sent a basic "I forgot" note which probably wouldn't have worked.

I need to follow up on my skeptical comment about taxr.ai - I decided to give it a try after all for my own tax situation (missed an RMD from an inherited IRA), and I'm honestly impressed. The system asked really specific questions about why I missed the distribution and then generated a letter that covered all the important points. What surprised me most was how it caught that I needed to file separate 5329 forms for each tax year affected, not just one form - something I would have definitely done wrong. Just got confirmation from the IRS last week that my penalty was waived! The guidance on exactly where to mail everything and what supporting documentation to include was spot on.

If you're having trouble with IRS communication about missed RMDs or penalties, I'd highly recommend Claimyr (https://claimyr.com). When I was dealing with my own missed RMD situation last year, I needed clarification on some aspects of the waiver process but couldn't get through to the IRS after days of trying. I was about to give up when I found Claimyr. They basically hold your place in the IRS phone queue and call you when an agent is about to pick up. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. I was connected to an actual IRS agent within a couple hours (after trying for days on my own). The agent clarified exactly what documentation I needed for my medical hardship claim and how to properly code my Form 5329. Saved me from submitting incomplete paperwork that would have likely been rejected.

I have to eat my words about Claimyr. After posting my skeptical comment, I was still stuck trying to reach the IRS about my own tax issue (not RMDs, but a penalty notice I didn't understand). After my 5th failed attempt to get through, I decided to try the service. Set it up around 8am, and by 11:30am I got the call that an agent was ready. I spoke with an actual helpful IRS person who explained exactly what I needed to do about the notice. The whole process was surprisingly smooth. For the original poster - if you need clarification on anything about your Form 5329 submission or want to confirm you're doing it right, this might be worth it. Getting direct answers from the IRS about your specific situation beats guessing or relying only on forum advice.

One tip that saved me when I had to submit my missed RMD explanation - make sure you keep proof of mailing! Use certified mail with return receipt requested. When I submitted my Form 5329 with waiver request, the IRS initially claimed they never received it. Because I had proof of delivery, they honored my original submission date. Also, make copies of EVERYTHING you send. I learned this the hard way when they asked for additional information and referenced things from my original letter that I hadn't kept a copy of.

Has anyone here actually had the 50% penalty waived? I missed an RMD 2 years ago (totally my fault, no good excuse) and just paid the penalty because I assumed they wouldn't waive it without some major reason like being in the hospital.

Sophie, I'm sorry to hear about your health issues that led to missing your RMDs. The good news is that health-related reasons are typically considered valid reasonable cause by the IRS for penalty waivers. Here's exactly what you need to do: Complete Form 5329 for tax year 2023, enter the missed RMD amounts on line 54, calculate the 50% penalty on line 55, then on line 56 enter "RC" and put $0 for the penalty amount you're requesting to be waived. Your explanation letter should include: 1) Specific details about your health condition and how it prevented you from managing your retirement accounts, 2) The exact dates and amounts of the missed distributions, 3) Confirmation that you've now taken the distributions to correct the error, and 4) A statement that this was an isolated incident and you intend to comply going forward. Mail both documents together using certified mail to your regular IRS filing address. Don't wait for your 2024 tax filing - submit this separately now to show you're addressing it promptly. Keep copies of everything and proof of mailing. The IRS typically takes 2-6 months to respond to waiver requests, but health issues are one of the more commonly accepted reasons for reasonable cause. You've got a strong case since you corrected the mistake as soon as you discovered it. Good luck!

Sophie, I'm really sorry to hear about your health issues and the stress this must be causing you. The good news is that health-related reasons are among the most commonly accepted justifications for RMD penalty waivers. Here's a step-by-step approach for your situation: **Form 5329 Instructions:** - Complete Form 5329 for tax year 2023 - Line 54: Enter the total amount of missed RMDs ($6,800) - Line 55: Calculate the 50% penalty ($3,400) - Line 56: Enter "RC" (reasonable cause) and $0 as the penalty amount you're requesting to waive **Your explanation letter should include:** - Specific details about your health condition and how it impacted your ability to manage financial matters - Timeline of when the health issues occurred relative to when RMDs were due - Acknowledgment that you've now taken the missed distributions - Statement that this was an isolated incident due to extraordinary circumstances **Important tips:** - Mail everything together using certified mail with return receipt - Send to your regular IRS tax return filing address (don't wait for 2024 filing) - Keep copies of everything - Be honest and detailed in your explanation - the IRS appreciates transparency Given that you've already corrected the mistake and have legitimate health reasons, you have a strong case for getting the penalty waived. The key is showing that you acted in good faith once you discovered the error.