Tuesday, December 15, 2015

It’s that time of the year!

Is it that time of the year for you? I’m not talking about Christmas, or Boxing Day, or National Chocolate Day, or any other holiday you might celebrate in December. I’m talking about the required minimum distribution (RMD) you must take from your IRA before the end of the year if you are 70½ or older.  
Suppose, though, you start digging through your records and discover that you had miscalculated your RMD five years ago. Should you simply forget about it and hope the IRS never catches on? Is there a statue of limitations on such oversights?
According to IRA expert Ed Slott the IRS generally has three years to come after you for an audit or for more money. But apparently there are no special rules for RMDs.
So get out your checkbook and give the Treasury Department what’s due. And while you are in the giving mood this month, take advantage of National Fruitcake Day on Dec. 27 to re-wrap that rock hard, fruit filled holiday cake and give it to someone … anyone.    

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