I noticed what appears to be an error in my bank's required minimum distribution calculation. I am a beneficiary where the former ira owner died before the required beginning date. I have been taking distributions based on the single life expectancy minus x years formula. It appears that my bank has been erroneously calculating single life expectancy anew each year, resulting in 5-10% lower distributions than my true RMD in year 2 and beyond. Two questions:
1) Must I file form 5329, since the 5329 instructions state "If the trustee, custodian, or issuer of your IRA informs you of the minimum required distribution, you can use that amount." Or should I file 5329 showing no excess accumulations and therefore no tax? Or should I calculate it the RMD on my own, show the tax, and write the excuse letter? 2) This has been happenning for 2 years. Are excess accumulations additive, in that if I were $100 short in 2005, and $200 short in 2006, do I owe tax on 50% of $300 in 2006? I see this logic in the 590 for excess contributions, but not excess accumulations.-MVL
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