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 ...

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 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 ...

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.

The IRS could reduce the fee to 10% if you withdraw the proper amount within two years and file Form 5329. In some cases, the agency will waive the penalty entirely.

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.

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 ...

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.