If you are over age 73 and choose not to take your RMD, you will be penalized by the IRS. The amount not withdrawn will be subject to a 25% tax. Before the SECURE 2.0 Act was passed in 2022, this was a 50% penalty.8According to the IRS, the penalty drops to 10% if the "RMD...
The bipartisan retirement bill includes provisions to gradually boost the age for required minimum distributions, increase catch-up contributions for some savers, and make auto-enrollment in 401(k)s mandatory going forward. The Senate is considering simi
If you have a traditional individual retirement account (IRA), you must start withdrawing money from it by a certain age: the year that you turn 73.1 This rule is not negotiable and there is a hefty penalty of 25% of the sum you were supposed to withdraw if you don't.2 Why?