RMD - Lost 242b notice?

[jmartin]

Dr. A turned 70 1/2 in 2003. He is a greater than 5% owner. He completed a 242b notice back in the 80's so he wouldn't have to take an RMD. He is retiring this year. In preparation of retirement he met with his broker in regards what to do with the money that is still in the retirement plan. The broker had asked if Dr. A had been taking RMD's from the retirement plan. Dr. A who has other investments outside of the retirement plan had taken RMD's required for those accounts, but not the qualified plan (due to 242b notice). The broker was unaware of the 242b notice that prevents RMD's for qualified plans. Still this caused a scare in DR.A. To make himself feel better, he requested from his lawyer a copy of the 242b notice, just to make sure everything was fine. When the lawyer went to retrieve the 242b notice, he could not locate it. Both the doctor and the lawyer remember the 242b notice being filed.

What happens if the 242b notice is misplaced? Since it was required to be filed so many years ago, I would have to imagine that the chance of this happening is quite high. What are the ramifications? I assume for starters he would need to "catch up" on all missed RMD's (years 2003-2011, not counting 2009). What is the likelyhood of the excise tax being waived? His account balance is currently $700k, so the RMD's (and corresponding tax) would be quite high. It does not sound like anyone is planning on using this as an "excuse". It may have actually been misplaced.

[jpod]

There was no "filing" required, if you mean it had to be submitted to IRS or some other government agency. The only "filing" necessary was to preserve it in a file in case you needed it later.

[ETA Consulting LLC]

The thing about the TEFRA notice was that even though it granted the delayed payout, you and to prescribe when and how the distributions were ultimately going to be taken. It would appear as if this document should've been reviewed back when the good doctor first turned age 70 1/2.

It's always easy to identify the issue; as I have just demonstrated. It "MAY" be helpful, however, if he can remember what his elections were; and use this information when reaching out to the IRS. They'll typically ask "how do you remember those were your elections?" It's good that he thought to ask for it prior to an IRS audit; the proactive measure will definitely count for something.

Good Luck!