Avoid Costly Penalties by Staying on Top of Your RMD Deadlines
TL;DR
Many investors, especially self-directed ones with small balances, miss their required minimum distributions (RMDs) from IRAs, leading to potential tax penalties totaling up to $1.7 billion annually. Vanguard estimates that 6.7% of IRA holders aged 73+ missed RMDs in 2024, with larger account holders facing higher penalties. Automating RMDs and consolidating accounts can help prevent these costly mistakes.
- Forgetting IRA Withdrawals Is Costing Investors Billions in Tax Penalties Barron's
- Too many people forgot their RMDs last year. Don’t make this ‘billion-dollar mistake.’ MarketWatch
- How Much Is the Required Minimum Distribution (RMD) If You Have $500,000 in Your Retirement Account? The Motley Fool
- Retirees: Miss the Dec. 31 RMD deadline and face a 25% penalty thestreet.com
- Is There A Best Strategy For Taking RMDs? Forbes
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