Inherited IRA RMD


I have a small inherited IRA and I forgot to take the RMD last year (I know, it was stupid but I am already working on automating it so I don’t do it again). The distribution I should have taken was $531. My question is do I still have to take it or can I just pay the penalty for not having taken it?


Since the penalty is 50% of what should have been withdrawn (yikes!), I’d recommend taking last years RMD now and filing Form 5329 with a letter attached requesting a penalty waiver.

Honestly, if the IRA is small enough, I’d consider taking it out faster than the RMD schedule requires. Do you really want to deal with $500 withdrawals every year?

Good luck!



Thank you–I am going to try the form you suggested!

In prior years, I have taken out more than the required amount but didn’t need to do so this year so it slipped my mind. I have been on the fence about cashing it out. It’s complicated because of family (isn’t everything?). Since inheriting it 18 years ago, in addition to taking some out for me, I have used it as a fund to help me bail out my sister and brother since my parents weren’t here to do it (kind of treating it as money they would have used to help us out if they had still been alive). My brother passed away a few years ago and my sister is more financially secure so haven’t had to rely on it as much. Given my income, cashing it out would bump me up a tax bracket so I think I am going to leave it in there for now.


You should be able to arrange for the RMDs to be automatically distributed to you. I would definitely try and get the penalty waived if you can.


The IRS is super strict about RMD’s so they probably won’t waive the penalty honestly. But, it’s always worth a try. You should take the RMD still ASAP. And for sure set up a reminder or just automatic transfer for the future.


Thanks–I completed the paperwork today for the withdrawal as well as to set up automatic withdrawals moving forward.


Hi @MakingYourMoney, @60MinuteFinance, and @ChiefMomOfficer, I sent in a letter with my tax return and they just sent me a letter saying that they approved my request to waive the penalty! Thank you for your suggestion. Wasn’t expecting the extra $250 so it was a nice surprise!




That’s great @Jenny!