Is there a way to apply for an exception to the 50% penalty for taking too little from an IRA? The individual (age 76) was hospitalized from mid-November through part of January and so unable to withdraw the remaining portion (about 10% of the total.)The procedure is as follows (per Pub 590 except for step 2):1. File the 2006 return and include the penalty.2. Withdraw the balance of the 2006 RMD now.3. Submit a request, signed under penalty of perjury (see the jurat on the 1040), for refund. Basically, include the information you cited, plus the facts that the deficiency has been cured and (we hope) all previous RMD's have been taken.I suspect they'll refund it. I've seen them refund for a lot less reason.Phil
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