Missed taking my RMD for 2013

Asked March 17, 2014, 10:14 AM EDT

I missed taking my 2013 RMD total of $1500. Is this $1500amount added to my 2014 RMD total?

Hamilton County Ohio personal finance retirement planning roth ira from rmd rmd

3 Responses

Hello, according to the IRS, the amount you did not withdraw will remain in your account, but it will be heavily taxed:"If an account owner fails to withdraw a RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline, the amount not withdrawn is taxed at 50%. The account owner should file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, with his or her federal tax return for the year in which the full amount of the RMD was not taken." You can find more info here: http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions#8

I understand everything about the taxes owed on the 2013 amount. My question is do I add the 2013 RMD amount of $1500 that wasn't taken to my RMD amount that is owed for 2014

I apologize for the delay - I was double checking to make sure I had the correct answer for you. The answer is no - the amount for the 2014 RMD will not be increased by the RMD missed in 2013, but you can opt to withdraw more than the minimum if you like. Taxpayers cannot make up for RMDs that they should have taken the previous year but did not. Rather, you will owe a penalty tax (as you know) unless you can request and receive a waiver due to extenuating circumstances. For more info, try these resources:

http://njaes.rutgers.edu/money/ira-table.asp
http://www.extension.org/pages/27766/how-to-make-required-minimum-withdrawals-from-retirement-savings-plans#.UygxhE1OWM8
http://www.extension.org/pages/45877/what-are-the-rules-for-taking-a-required-minimum-distribution-rmd-after-youve-postponed-it-by-workin#.UygxvU1OWM8