RMD's

[Chief]

A person received a letter dated 01/09/2008 and check from Vanguard for a 1996, 1997, 1999, and a 2001 required minimum distribution that had not been taken. Federal tax had been with held.
Of course the 1099's will not be delivered until sometime early in 2009. Should I wait until sometime in 2009 to request an abatement of penalty for not taking these RMD's? He had let Vanguard take the responsibility of handling these. The amount is $10,979.69.

[JG EA]

A person received a letter dated 01/09/2008 and check from Vanguard for a 1996, 1997, 1999, and a 2001 required minimum distribution that had not been taken. Federal tax had been with held.
Of course the 1099's will not be delivered until sometime early in 2009. Should I wait until sometime in 2009 to request an abatement of penalty for not taking these RMD's? He had let Vanguard take the responsibility of handling these. The amount is $10,979.69.

So they took the RMD after 2001 to date? I assume the tax was withheld for 2008 so that would not be an issue for past years. I would fill out 5329's for those years. In the instructions you don't have to send in the 50% penalty. Write a letter with the forms. It's there in the instructions on page 6 for lines 50 - 52.

If you are too busy now do it as an after tax season project.