IRS Missed RMD Penalty (required minimum distribution)

The IRS missed RMD Penalty is 50% of what you were supposed to withdraw, but did not withdraw; and you pay taxes on the full RMD. I’m not sure what inspired you to arrive at this page.  We do know that money is an intense word.  We have spent much time learning how to best support people with their finances.

The short answer, you can file the needed forms with the IRS yourself.  Or you can ask for help.  Feel free to schedule a call with us.  If you prefer to do this yourself – we’ll gladly send you our guide, “Fixing a missed RMD in 5 Easy Steps”

Problem:

IRS missed RMD PenaltyMissing a required minimum distribution (RMD) from your IRA can be devastating and costly.  Keep in mind the IRS missed RMD Penalty is 50% of the MISSED required distribution amount. Imagine you’re required minimum distribution (RMD) is $10,000 for a year and you forgot to take the distribution.  What might the impact of this be?

Let’s look at this:

$10,000 was what you were to take out of your IRA
$5,000 IRS missed RMD penalty!
$3,500 is the taxes on the whole amount, assuming 35% for federal and state taxes
1,500 is all you get after that mistake and paying the IRS missed RMD penalty!

I’m trained by Ed Slott and his team.  Ed Slott is who the Wall Street Journal calls when they have questions about IRA’s, 401(k)s and pensions.  I’m what Ed Slott calls a Master Elite Advisor* – simply put, I know more about IRAs and how to avoid making mistakes.

IRS Missed RMD Penalty Solution:

How do we fix or correct the IRS missed RMD penalty issue?  It might seem scary at first.  We have a comprehensive checklist system that we use.  One of the checklists allows us to work with you to correct this issue and POSSIBLY even avoid the penalty.  You will always have to pay your taxes – can’t help you there!

Get our guide, “Fixing a missed RMD in 5 Easy Steps” – fill out the form a little lower on this page.  We are committed to your privacy, no credit card is needed and you can remove yourself at anytime.  The steps show you how to correct this yourself, if you want to.

If what you need or want is to have some focused assistance, for a fee, we can provide that support.  If you want the do it yourself route – get our whitepaper.  If you would like support in filling out and submitting the paperwork – give us a call.  The office number is 408-459-8383.  The fee? Yes, we, like you, don’t work for free.  The fee depends on a variety of factors.  The minimum fee is $250.  The most challenging case we have worked on is someone with 13 years of missed required minimum distributions.

Overview of calculating an RMD

Take the owner’s age as it would be at the end of the year your doing the calculation for.  Then, you locate their remaining age expectancy in the IRS life table.  You then locate the balance of the account on December 31, of the year before the current year (assuming you are calculating the RMD for this year).

Get some help correcting the situation

We are highly skilled at helping people make the request to have the penalty waived.  If you would like some assistance we are here for you.  The key question is what is this going to cost you?  Well, as little as $250.  If you are filling out the tax forms we can guide you through the process. If you prefer, we can have an enrolled agent process the forms.  What works for you? Call our office and let’s see what we can work out 866-589-9366.

We are a fee only Investment Advisor.  We work from a fiduciary standard – we’ll explain this when you call.

Bonus Offer

As mentioned, Onesta Wealth Management is a fee only Registered Investment Adviser firm.  The bonus is this, we will work with you to build a comprehensive retirement income plan.  If you hire us to create this plan we may be able to include fixing your Missed Required Minimum Distribution issue (if only one year has been missed).

You can also request our RMD Calculation guide

Our Required Minimum Distribution website

iXray Retirement focuses on what’s important to you – check it out
Annuity research website
Onesta Wealth Management – our Registered Investment Adviser site
Our Social Security Website

Our planning process is unique to each person

Fiduciary or Suitability standardWe specialize in working with people, like you, regarding Wealth Management Retirement Planning.  Onesta Wealth Management is a registered investment adviser located in California.  We can service clients across the United States, as permitted by your state.

We are a fee only Registered Investment Advisor.  We look forward to connecting with you soon.

These three Brief Videos share Our planning process for working with clients, please enjoy!

Five Key Elements: (these videos go a bit deeper about our comprehensive planning)

Helping Individuals and Families Thrive with Grace & Ease

Our planning process
Click to view an overview of our Five Key Elements or see each one below

Click to view an overview of our Five Key Elements or see each one below

Our planning process

We have an exclusive five key element design.  Like spokes on a wheel, if one element is weak then there may be a pending failure. Wealth Management Retirement Planning can be complex.  However, if we could show you a way that makes this process simple and easy – would you be interested?

We have seen people who have been surprised by the challenges they face in retirement. When the first spouse passes away (dies) the surviving spouse is often tossed into a whirlwind.  A whirlwind of paperwork and financial reality checks. We highly recommend a 2nd opinion before one of you dies.

  1. Income The fear of poverty is number 1, having your income handled would matter, yes?
  2. Taxes Tax planning - proactive is always best
  3. Health Area 3 is health and extended care planning
  4. Estate Area 4 is health and extended care planning
  5. Legacy Area 5 - providing for the surviving spouse and heirs

There are many places you can learn more about Our planning process.  Google certainly has much information from us including videos on YouTube. And we are growing our Google places listing Our others sites are fully populated with useful information, consider visiting them: iXray Social Security iXray Retirement iXray Tax Solutions Calrima Financial IRA Jedi iXray Annuities

As we add more content to this site we would like to keep you informed.  If you would like to be kept updated on all that we are up to you can add yourself to our newsletter. It is as simple as filling in the form to the right.

We will gladly send you any of our booklets.  We have booklets on Avoiding IRA Distribution Mistakes, Annuities, Life Insurance, and even have a booklet on Social Security planning. 04 Privacy Policy Notice 2012  – our official privacy notice 05 Form ADV Part 2A 2B  – our official ADV Part II Brochure

IRA Beneficiary Designation Mistakes (video)

Since you are here

how about learning about avoidable IRA beneficiary designation mistakes.

Video Part I

In this, Video Part I, we discuss avoidable IRA Beneficiary Designation Mistakes.  We invite you to enjoy our video and make notes.  If you need assistance with confirming your retirement accounts are setup, we are available to you.

 

Our main IRA website – IRAJedi.com

Annuity Research web site -iXrayAnnuities.com

Richard Loek

Executive Biography – Richard Loek

Richard LoekMr. Loek is an Investment Advisor Representative, a licensed Life and Health Insurance Agent and a member Ed Slott’s Master Elite IRA Advisor group.  Mr. Loek and his team at Onesta Wealth Management (Onesta) and Calrima Financial & Insurance Agency (Calrima) have been working with people in a variety of capacities for over 20 years.  Calrima has a comprehensive team of associates and affiliates that pride themselves in providing outstanding customer service and achieving customer loyalty.

“The Original Recovering Software Engineer” is a phrase and title Mr. Loek coined a few years ago.  Transitioning from solving complex software design issues to solving complex financial planning issues was a complex yet very comfortable transition.  Helping people with software is still at the core of what Mr. Loek achieves.

Proud member of Ed Slott's Master Elite IRA Advisor GroupEd Slott’s Elite IRA Advisor Group™ is an exclusive group of advisors who are dedicated to b eing leaders i n the IRA industry. Because being the best in business requires an enormous amount of ongoing education, time and effort. The Elite IRA Advisor Group™ is a single resource for serious professionals.  The Elite IRA Advisors are equipped with up-to-date tools and resources to help their clients.

Mr. Loek is a San Francisco Bay Area Native.  Mr. Loek volunteers his time to coach people in accomplishing what is important to them.  Mr. Loek holds a variety of positions in the community.  Mr. Loek served as the Charter President of the San Jose Willow Glen Lions club. Mr. Loek has served on The Mental Health Advisory Board of Santa Clara County. In Mr. Loek’s leisure time he has participated in half-marathons & triathlons. Mr. Loek has also been a program leader at the company that is widely recognized as the industry leader in training and personal development.

CHARITABLE PARTICIPATION

Boy Scouts of America as an Assistant Scout Master • Parents Helping Parents as a parent, Board member and President • San Jose Willow Glen Lions Club, Charter President• Toastmasters, Vice-President of Education and President • Society for Financial Awareness (SOFA), Founder of the Silicon Valley Chapter• Santa Clara County Mental Health Advisor Board, Board Member • Make-a-wish foundation, wish grantor and speaker’s bureau member • Cinequest Film Festival, Speaker & Moderator • San Jose Jazz Festival, volunteer VIP pavilion