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About Tax Map
IRS Tax Map 2008
Current IRS Tax Map

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Part VIII—Additional Tax on Excess Accumulation in Qualified Retirement Plans (Including IRAs)


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You owe this tax if you do not receive the required minimum distribution from your qualified retirement plan, including an IRA or an eligible section 457 deferred compensation plan. The additional tax is 50% of the excess accumulation—the difference between the amount that was required to be distributed and the amount that was actually distributed. The tax is due for the tax year that includes the last day by which the minimum required distribution is required to be taken.
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Waiver of required minimum distributions for 2009.

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For 2009, you are not required to take a minimum distribution from your IRA or certain employer-provided qualified retirement plans that are defined contribution plans. This waiver applies to plan participants as well as beneficiaries in: The waiver also applies to those individuals who turned age 70 in 2009 and delay taking their required distribution until April 1, 2010. For more information on the temporary waiver, see Pub. 575 (retirement plans) and Pub. 590 (IRAs).
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Line 50


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The temporary waiver does not apply to required distributions for 2008, even for individuals who turned age 70 in 2008 and chose to take their required distribution by April 1, 2009. If you postponed a distribution required for 2008 until 2009, enter that amount on line 50. Also enter any amount which does not qualify for the 2009 waiver for minimum distributions. See Waiver of required minimum distributions for 2009 above for plans that qualify for this waiver.
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Required Distributions


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IRA (other than a Roth IRA).

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You must start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70. At that time, you can receive your entire interest in the IRA or begin receiving periodic distributions. If you choose to receive periodic distributions, you must receive a minimum required distribution each year. You can figure the minimum required distribution by dividing the account balance of your IRAs (other than Roth IRAs) on December 31 of the year preceding the distribution by the applicable life expectancy. For applicable life expectancies, see Pub. 590.
If the trustee, custodian, or issuer of your IRA informs you of the minimum required distribution, you can use that amount.
If you have more than one IRA, you can take the minimum required distribution from any one or more of the individual IRAs.
For more details on the minimum distribution rules (including examples), see Pub. 590.
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A qualified charitable distribution will count towards your minimum required distribution. See Pub. 590 for more information.
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Roth IRA.

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There are no minimum required distributions during the lifetime of the owner of a Roth IRA. Following the death of the Roth IRA owner, required distribution rules apply to the beneficiary. See Pub. 590 for details.
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Qualified retirement plans (other than IRAs) and eligible section 457 deferred compensation plans.

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In general, you must begin receiving distributions from your plan no later than April 1 following the later of (a) the year in which you reach age 70 or (b) the year in which you retire.
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Exception.
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If you owned more than 5% of the employer maintaining the plan, you must begin receiving distributions no later than April 1 of the year following the year in which you reach age 70, regardless of when you retire.
Your plan administrator should figure the amount that must be distributed each year.
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Waiver of tax.

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The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
  1. Complete lines 50 and 51 as instructed.
  2. Enter RC and the amount you want waived in parentheses on the dotted line next to line 52. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 52.
  3. Complete line 53 as instructed. You must pay any tax due that is reported on line 53.
The IRS will review the information you provide and decide whether to grant your request for a waiver.
For more details, see Pub. 590.