Hi,
I have an elderly client who didn't take RMD's from an IRA account that on one was aware of for multiple years.
I know there is a 50% penalty for the amount of RMD not taken for every year, and that normally you can have the penalty waived.
What I plan to recommend is that the client immediately takes the RMD's for the last 3 years only, and then amend those returns and request that the penalty be waived for each of the 3 years.
Only 3 years because beyond that is outside of the statute of limitations.
What do you think? any advice is appreciated!