Reported 1 day ago
Failing to take your Required Minimum Distributions (RMDs) from retirement accounts like IRAs and 401(k)s can lead to hefty penalties, including a 25% excise tax on the unwithdrawn amounts. RMDs, which are mandatory starting at age 73, require you to pay taxes on your tax-deferred savings. To avoid penalties, it's crucial to plan and take RMDs on time. If you miss an RMD, immediate corrective actions include withdrawing the amount, filing IRS Form 5329, and potentially requesting a penalty waiver, while consulting a financial advisor can offer tailored assistance.
Source: YAHOO