VirtualTPA

My understanding is that it is the same TPA. Yes, TPA is blaming the participant for failure to withdraw RMD in a timely manner. I have instructed the CPA to get the service agreement with TPA as well as plan AA. Once I gather more information will post the details.

Just received this question from a CPA friend. One of his tax client who was a 5% owner in a small consulting firm (about 5 years back) and then reduced his ownership to 2% later. He received RMD while he was a 5% owner. Since then he never received any RMD from the plan (for 5 years). Recently he received a letter from the TPA that he missed taking his RMD for the past 5 years and they will be processing all of his RMDs and he will owe taxes and penalties (for failure to take RMD) as well as the TPA has told this participant that the plan now has a compliance failure and that needs to be corrected and said that they (the TPA) will bill him about $5,000 for the filing fee + TPAs fee. What should be the response by the participant.