BulldogTom Posted April 13, 2011 Report Share Posted April 13, 2011 Client moved his IRA account to a new brokerage house during the year. The old broker did not tell him to take the RMD and neither did the new one. No RMD taken for 2010. Any way to get the additional tax abated? Thanks Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
grandmabee Posted April 13, 2011 Report Share Posted April 13, 2011 yes, have client take out rmd now. I have my clients pay the tax then writE a letter explaining what happend and ask for abatement. I have always gotten it. letter should explain what steps they have taken to make sure it won't happen again. some others on this board don't make their client pay the tax just write letter telling what happened. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 13, 2011 Author Report Share Posted April 13, 2011 Thanks Bcolleen. I read the instructions about the request. What I am looking for is suggestions on what to put into the letter for those who have successfully gotten abatement. Any hints on how to write the letter? I asked the client to try and get a letter from the broker stating they did not advise him to take the RMD because the account was new to them. I don't have much hope of him getting that letter, but I thought that might be a good reason. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 13, 2011 Report Share Posted April 13, 2011 Although the responsibility is the taxpayer's, not the trustee's, they usually will accept it one time with the reason being [and the letter should be written by him, handwriting it is even advised] "I thought it would be done by the broker, automatically, and did not realize that it had been missed when I changed brokers." If this is the first time he had to withdraw RMD, that should be mentioned, that he was not aware it needed to be done. If it was done automatically in the past, then again, that should be mentioned, as basis for his assumption. If his handwriting is a bit shaky, that is all to the good. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted April 13, 2011 Report Share Posted April 13, 2011 Attach the letter and don't forget to fill out Part VIII of Form 5329 starting with line 50. taxbilly Quote Link to comment Share on other sites More sharing options...
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