Missed Required Minimum Distributions (RMD) from IRA - Multiple years not taken

This is unfortunately a common situation. You'll need to address both the missed RMDs and the unfiled tax returns, but there's good news - the IRS has procedures for this. For the missed RMDs, you typically need to take each year's distribution separately and file Form 5329 for each year to request a penalty waiver. The standard penalty is 50% of the amount not taken, but given your father's cognitive decline, you have excellent grounds for requesting a waiver of these penalties. Regarding the unfiled returns - if his only income was Social Security and it was below the taxable threshold, he likely wasn't required to file. However, once you add in the RMDs, he'll probably need returns filed for those years. I wouldn't recommend taking all missed RMDs as one lump sum this year, as that would create a huge tax bill for 2024. Instead, work with a tax professional who can help you file the past-due 5329 forms with a letter explaining the circumstances.

After dealing with my mom's similar situation last year, I found https://taxr.ai incredibly helpful. I was overwhelmed with figuring out multiple years of missed RMDs and trying to calculate what should have been taken each year. The site helped me organize her account statements and tax documents, then walked me through what forms were needed. I uploaded her IRA statements and they calculated what each year's RMD should have been and helped prepare the paperwork to request penalty waivers. The whole process was much less stressful than I expected, especially since I'm not a tax expert and was dealing with 4 years of missed distributions.

I was really skeptical about online tax services until I tried https://taxr.ai for my father's missed RMDs from 2018-2021. I was surprised by how thorough it was. They identified that he qualified for the SECURE Act change that moved the RMD age from 70½ to 72, which actually meant he had fewer missed distributions than I thought. They calculated the exact amounts for each year based on the December 31 balances, which I wouldn't have known how to do correctly. They also created documentation showing his diagnosis timeline to support the penalty waiver request. The IRS accepted our explanation and waived all penalties. Saved us thousands in potential penalties and made the whole process much less stressful.

Just went through this exact situation with my mother. After multiple attempts to call the IRS for guidance (kept getting disconnected or waiting forever), I used https://claimyr.com and their service connected me with an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was incredibly helpful and walked me through the specific procedures for missed RMDs due to cognitive decline. They advised me on exactly what medical documentation I needed to include with the waiver request and how to structure the letter explaining the situation. Saved me hours of research and uncertainty.

Just went through this exact situation with my mother. After multiple attempts to call the IRS for guidance (kept getting disconnected or waiting forever), I used https://claimyr.com and their service connected me with an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent

I was completely against using a third-party service to contact the IRS, thinking it was just another way to get scammed. But after spending literally 3 days trying to get through on my own (disconnected 4 times after waiting 1+ hours each time), I gave Claimyr a shot. Got connected to an IRS agent within 35 minutes. The agent confirmed exactly what I needed to do for my mother's missed RMDs - file separate 5329 forms for each year, attach a letter explaining her medical situation, and include a statement from her doctor. They also explained that I didn't need to take all the missed distributions immediately - I should file the forms first and wait for their response on the penalty waivers. Saved me from making a costly mistake of withdrawing everything at once.

Former tax preparer here. For the missed RMDs, here's what you need to do: 1. Calculate the correct RMD for each missed year (based on the Dec 31 balance of the previous year and the applicable distribution period) 2. File Form 5329 for EACH year separately 3. Write "Request for Waiver" in the margin and attach a letter explaining the medical situation with documentation 4. Do NOT withdraw all past RMDs in one year - that's a common mistake 5. For any year where his income with the RMD would exceed the filing threshold, file a return The IRS is very reasonable with these situations when there's documented cognitive decline. Get a statement from his doctor dating when the symptoms became apparent.

A lot of good advice here but something important is being missed - the SECURE Act changed the RMD age from 70½ to 72, and then SECURE 2.0 changed it again to 73 for people born 1951-1959. Your father being 79 now (born around 1945?) would have hit RMD age under the old rules. Also, depending on how small the Simple IRA is, you might want to consider a full withdrawal to simplify things going forward, especially if managing annual RMDs will be challenging with his condition.

This is a challenging situation but you're taking the right steps to get your father back into compliance. Based on my experience helping elderly clients with similar issues, here are a few additional considerations: 1. **Documentation timing is crucial** - Get a letter from his doctor that specifically states when his cognitive decline began affecting his ability to manage financial affairs. This will be key for the penalty waiver requests. 2. **Consider the timing of distributions** - Rather than taking all missed RMDs immediately, you might want to spread them across 2024-2025 to manage the tax impact, while still filing the 5329 forms for each missed year. 3. **State tax implications** - Don't forget to check if your state has any additional requirements or penalties for missed RMDs. 4. **Future planning** - Once you get this resolved, consider setting up automatic distributions from the IRA to prevent future missed RMDs, especially given his condition. The IRS really is understanding in these situations when there's documented medical cause. Focus on getting that medical documentation first, then work through each year systematically. A tax professional experienced with elder financial issues would be a good investment here given the complexity and multiple years involved.