I didn’t take a big enough distribution from my inherited IRA last year. Why not? WHO THE F KNOWS. How bad is this? What do I do to remedy it - call the IRS and beg for mercy?
Taxes hadn’t been paid on the IRA before my grandfather passed, so each of the inheritors were supposed to withdraw a proportionate amount. Somehow I’m a few thousand short of that number. Honestly no idea how this happened or where the lower number came from. I’m looking back through emails and transaction dates, and I remember double-checking an email that has the right value.
I know with Mr Pug’s Inherited IRAs he just needs to withdraw it all with in 10 years, not a set amount but this is on a newer one and maybe the rules for yours are different. He specifically asked our accountant because he wanted to be able to change how much he takes each year and not have a fixed amount. Do you have a tax accountant you can ask?
You want to look up IRS Form 5329, which is a request for a waiver of the penalty. You need the version for the year that you missed/ were short on. You’ll have to make a case that you made a reasonable error (likely, since it sounds like you paid some, just not enough?), and you will likely have to file it with an amended tax return.