Is there a statute of limitations on RMDs?

[Guest Kathleen Fouquet]

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?

[Guest Jennifer Reid]

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]

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!