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I inherited a small [$12k] IRA in 2011, and understood that since my Mother had not yet taken a 2011 distribution, that I was required to do so. The problem is, I forgot to take it.

Last year I took the 2011 distribution amount and the 2012 distribution amount.

Do I need to file anything now with the IRS because of this mistake, or should I wait and see if/what the IRS tells me?
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I inherited a small [$12k] IRA in 2011, and understood that since my Mother had not yet taken a 2011 distribution, that I was required to do so. The problem is, I forgot to take it.

Last year I took the 2011 distribution amount and the 2012 distribution amount.

Do I need to file anything now with the IRS because of this mistake, or should I wait and see if/what the IRS tells me?



dont know, but you might consider what i did.

>had no idea there's be RMDs on Mom's IRA (since *i* am under 70)
missed the first two years entirely but found that if Everything is distributed within 5 yrs..... no harm
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...missed the first two years entirely but found that if Everything is distributed within 5 yrs..... no harm


Thanks for your reply, Ox...

I'd much rather wait for the 5 yrs to run, since I invested it in some current downers.
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...missed the first two years entirely but found that if Everything is distributed within 5 yrs..... no harm


Thanks for your reply, Ox...

I'd much rather wait for the 5 yrs to run, since I invested it in some current downers.



well..... i spread it over the three yrs to minimize tax since i didn't know if i could make up for missing the first two RMDs

if you can work out for the 'missing' yr, you'll be able to hold a long time (iirc, RMD on inherited IRA is based on the *heirs* age)

i don't see how what you're invested in matters
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I'd much rather wait for the 5 yrs to run, since I invested it in some current downers.

That works to your benefit.

Less income to report currently when you make the withdrawals. You can withdraw the stock now, pay the tax on its current depressed value, then continue to hold to see if it recovers. If it does and you sell then (after at least a year has passed), you get capital gain rates on the increase.

If you leave it in the IRA and withdraw when/if it recovers, you pay ordinary rates on the entire value.

--Peter
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