Oops, I missed my Inherited IRA RMD for 2009

[vendingguy]

It's 3pm on January 1st and I already made my first financial blunder for the year posting.php?mode=post&f=15#

I have an inherited IRA (from a non-spouse, great-aunt actually) that has RMD of about $500/yea (specifically 513.76). I had been taking RMD religiously for the past 10 year but just forgot. I know there is a 50% penalty on non-withdrawn funds (about $250 in my case) but I'm not finding much info from the IRS.

It looks like I may have gotten amazingly lucky and the IRS doesn't require a distribution in 2009 (http://www.irs.gov/publications/p590/ch ... nk10006292 and http://www.irs.gov/publications/p590/ch ... nk10006460).

These seem to apply to me but how do I know?

Did fortune indeed favor the foolish?

Any advice from anyone would be greatly appreciated, thanks!
Charles

[Diane Kennedy]

Charles, sorry for the delay in responding. We've been making some updates to our site and somehow the forums locked me out!

The Minimum Required Distribution (MRD) has been suspended for last year. (ie...you didn't have to make it) But I do want to verify that this is applicable for you in your circumstances. More to come!!

[Diane Kennedy]

OK, back from the research vault. (virtually, not literally)

I wanted to make sure there wasn't a little gotcha in the waiver for RMD because most of the talk has been about how it impacts people over 70 1/2. But no gotcha!

Good news for you! Ignorance can be bliss. No penalty.

But remember it's only for this year. You will need to do a RMD next year unless they change the law this year.

[vendingguy]

Yes, I read everything I could find and it looks like I was given a divine "do over" but I feel much better hearing it from you too. My wife an I have adjusted our financial tickler file system and this will NOT be missed again. Thanks a bunch for the info!