Missed RMD, Waiver of 50% Excise Tax, Reporting

[JRG]

We have a client who has received a compliance statement from the IRS agreeing to waive the 50% excise tax on previously missed RMDs, some of which were already rolled over into IRAs.

Question is, how does the participant (after taking the correction distribution) report to the IRS that his excise tax was waived? Do he simply file a 1099 and say nothing of it. Does he have to attach a copy of the Plan's compliance statement? The company would rather not provide the compliance statement to the participant, would a signed statement from the company work?

[Tom Poje]

I don't think you have to do anything (but I of course could be wrong)

in the past you filled out form 5329 and sent in the $ and requested a waiver. if they were in a good mood they would return the money.

now you simply send in the form 5329 and request the waiver. if they refuse, they will write and tell you to send in the money