It is a pain in the butt to change my 403B RMD withdrawal choice (put on hold forever, spousal waiver required, etc.)
Well, it turns out I will be 1 penny shy over the whole year.
Do I really need to change it (ie: some onerous penalty I am missing)?
Mel
Fuhgeddaboutit!
:-)
The RMD penalty is 50% of the amount you didn't take. If the IRS sends you a bill for a half cent, let us know. I could use the laugh.
Once upon a time, AT&T took several months to removed large unwarranted charges from one account's bill. Working with a billing specialist, he agreed to get the bill down to a level close to what I expected. Just wanting to pay it off before they found an excuse to add any other charges, I mailed in a check.
Sure enough, once the final bill was issued, I was overpaid by 1 cent. AT&T mailed me a check. I kept it for years.
I have, however, made my bank correct checks and deposits that clear various accounts for the wrong amounts, even when they were off by amounts under a dollar. Why? I'd closed accounting periods on my books and wanted the damn bank account statements to match my books. One of us had to do the adjusting amount, and since they were at fault, they could fix it. During review, I'd have to justify it anyway.
t Thanks. I thought it was 50% of the underage. I just wanted to make sure I wasn't missing some absolute minimum penalty!
Mel
Have something to add? Share your thoughts — no account required.
Ask the community — no account required