As we approach the end of the year, there is nothing I lose more sleep over than required minimum distributions (RMDs). Early in my career, a 5-year-old beneficiary missed an RMD due to the custodian filing the wrong paperwork. The penalty at the time for missing a distribution was 50%, and the thought of telling her guardian, who had just lost his wife, that they owed money was a lot to handle.
Fortunately, the custodian recognized this mistake, helped file the proper forms and even wrote an explanation to the IRS. Crisis averted. But my FOM (fear of missing) RMDs was permanent.
