No. of Recommendations: 0
As to the overlooked IRA distributions, she should at the very least commence withdrawing this year and thereafter. If at all possible, she should elect a joint annuitant so that the divisor for her 70 1/2 minimum required amount starts at 26.2 instead of 16.6.
Also I have found that a very carefully written letter to the IRS stating willingness to pay ALL taxes and penalties but requesting a waiver of the 50% penalty has worked in the past. Remember this is your kinder and gentler IRS. In the letter note that she thought that she didn't have to withdraw because she was still working. Her tax preparer never told her she had to start withdrawals at 70 1/2. Perhaps even the IRA custodian neglected to tell her.
Best wishes and good luck whatever the decision. jb
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