Kathleen Fouquet
Oct 25 2001, 09:50 AM
Can the IRS go back an unlimited number of years to force RMDs? If there is a limit, how many years can they go back?
Jennifer Reid
Oct 25 2001, 11:47 AM
Because this could be a disqualifying failure, probably. A voluntary compliance submission to the IRS is recommended. However, if an audit has already been started, it is too late for VCP.
Mary Kay Foss
Oct 25 2001, 12:42 PM
Kathleen--
I'm answering your question as if you're looking at an RMD from an IRA rather than a qualified plan. With an IRA, the IRS cannot force you to go back and payout the missed RMDs. However, the 50% penalty would apply for each year that no RMD was taken.
My understanding is that the statute of limitations for the 50% penalty does not begin to run until Form 5329 is filed. I guess the IRS could go back any number of years to assess penalties in that case.
Good luck!
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