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This is in regard to Form 5329, Section XIII - Additional Tax on Excess Accumulation in Qualified Retirement Plans (Including IRAs)

My wife and I failed to take 2013 MRD’s on our TIRA’s.

We used TTax to prepare our taxes. We elected to request a waiver. Our 1040 currently shows no penalty.

Here are our reasons:

1) Two significant medical conditions in November and December distracted us.

2) We paid sufficient estimated taxes to cover the required MRD’s in 4 equal quarterly payments. It was the 1/15/14 payment that reminded us of our failure.

3) We both took our full 2013 MRDs on 1/14/14.

4) At the same time we arranged with our trustee to take future MRD’s on 10 December each year going forward.

The trustee believed that our request for a waiver was very likely to be granted. If it is not, the fine is >$23,000, so interest on a slow decision would be significant, ~$60/month.

What are the risks?

If I override TTax and pay the fine with my taxes does this change the chances my waiver will be approved?

If my waiver is approved, does return of the waived fine require me to file an amended return or other complex paperwork?

Thanks,

baumgrenze
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