Employee Plans Compliance Unit (EPCU) - Current Projects - Form 5498 IRA Required Minimum Distribution |
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Background
We are contacting owners of traditional Individual Retirement Accounts (IRAs) who did not take the required minimum distribution (RMD) after reaching the age of 70 ½. Sections 408(a)(6) and 408(b)(3) of the Internal Revenue Code apply the rules under section 401(a)(9) to traditional IRAs. Section 401(a)(9)(C) defines the required beginning date of a RMD for an IRA owner as April 1 of the calendar year following the calendar year in which the owner attains age 70 ½. It is important to note section 4974(a) of the Code imposes an excise tax equal to 50% of the RMD amount that should have been distributed, but was not.
The Project Process
We identify owners of traditional IRAs who are not currently taking their RMD by analyzing the information provided on Forms 5498, IRA Contribution Information. These forms are required to be filed by the trustee or issuer of your IRA and contain various types of information. We then send compliance check letters requesting a distribution be taken equal to the cumulative historic distribution that should have been made. EPCU then verifies this distribution actually occurred.
If You Receive A Letter
Review the letter and your distribution history. Please respond to the letter and take your RMD, as appropriate. If you need additional assistance, please communicate with the EPCU contact as indicated on the letter.
If You Have Questions
Please feel free to e-mail us and we will be glad to answer any questions you have about the project and how it relates to your situation. Please include the “IRA RMD” in the Subject line.
Other Resources
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Page Last Reviewed or Updated: March 11, 2009