That penalty was so severe that the IRS has rarely assessed it and has waived it in most cases – as long as the IRA owner made up the RMD shortfall and filed IRS form 5329, citing a reasonable ...

To request a waiver, file IRS Form 5329 and attach a letter explaining what went wrong. "They've never denied a request that I consulted on when the reason is reasonable," Appleby said.

Accordingly, they did not file IRS Form 5329, so the SOL period was never considered. The IRS could, in effect, go back indefinitely and assess the 50% penalty plus interest when RMD withdrawals ...

In addition, if you were younger than age 59 1/2 when you cashed in your 401 (k), then you'll need to file IRS Form 5329 along with your return.

In theory, taxpayers who failed to file the form 5329 would automatically be obligated the 10 percent penalty on the additional income tax owed from their early withdrawals on the day their tax ...

If the administrator messes up, you still can avoid the penalty by completing IRS Form 5329, on which you demonstrate that you qualify for the disability exemption.

The excess contribution can still be withdrawn from the IRA, but the client will have to pay a six percent penalty, which is paid by filing IRS Form 5329.

They properly paid federal income tax on the early distribution, but they claimed an exception to the 10% early-distribution penalty because of the hurricane by filing IRS Form 5329.

His advice: Send the IRS all the 5329 forms and penalty checks for each year in one envelope, certified mail, return receipt requested. The form is called Additional Taxes on Qualified Plans.

Since corrections made by October 15 of the year after the year of the excess will NOT have a 6% penalty, it is NOT necessary to file IRS Form 5329. Also, there is no penalty on the NIA – only ...