There are partial outages at Vanguard. What to do if you can’t make a required minimum distribution by Dec. 31

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  • Vanguard investors have been battling partial website outages that are preventing some clients from trading confirmations, certain statements and forms.
  • Disruptions could interfere with those making required minimum distributions before December 31.
  • However, if you miss the year-end deadline, you can still correct the mistake and request a penalty waiver, according to the IRS.

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Vanguard investors have been battling a partial website outage over the past several days, which has blocked some clients from trade confirmations, certain statements and forms.

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These interruptions can cause problems for year-end transactions, such as required minimum distributions, as there is a 50% penalty for missing the deadline,

“People are disappointed,” said Dan Wiener, co-editor of The Independent Advisor for Vanguard Investors. “When you go to view the information, it is unavailable.”

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This Friday, December 31st, marks the 2021 deadline for a number of moves, such as RMDs, certain retirement plan contributions, tax-loss accumulation and more.

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However, as customers log in to make year-end transactions or check mutual fund payments, many are losing information and struggling to access phone support.

“It must be the worst week of the year for this to happen,” Wiener said.

“Vanguard has been made aware of a service interruption associated with a third-party mailing and check processing vendor,” a company spokesperson said in a statement, explaining that customers may experience delayed mailing or certain statements. , may be unable to access the confirmation and form.

“Our teams are working round the clock on this issue, and our customer service representatives are available to assist customers who need immediate assistance,” the company said.

Dozens of Vanguard outages have been reported in the past 24 hours, according to downdetectorWebsite tracking real-time service issues.

“At this point you can’t do anything except wait on the phone,” Weiner said.

What happens if you miss the deadline for RMD

It can be nerve-wracking to miss the year-end deadline for RMDs. However, it may still be possible to avoid the 50% penalty by correcting the mistake and applying for a penalty waiver, According to the IRS,

The first step is to get the correct RMD from each account at the earliest. then you can file Form 5329 demand for penalty relief

You can follow the line-by-line instructions for Form 5329 Here, or work with a tax professional to avoid mistakes.

The IRS also includes a short letter of explanation covering your “reasonable error” and the steps you took to “correct the shortfall.”


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