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 The amount not withdrawn will be subject to a 25% tax.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...
Under the SECURE 2.0 Act of 2022, the age rose again to 73, starting in 2023, with provisions to raise it to 75 by 2033. RMD amounts differ based on individual circumstances; details (and a worksheet) are available on the IRS site. The exact amount of the distributions depends on ...
This is your RMD amount for this year. Example: If your IRA balance was $100,000 and your age is or will be 75 this year, you would divide the balance by 22.9. Your RMD for this year would be $4,366.82. You can find the IRS worksheet here. AgeDistribution PeriodAgeDistribution ...
And because the RMD rules for beneficiaries are different, knowing the rules can help you create a stronger estate plan as well. References IRA Required Minimum Distribution Worksheet | irs.gov Publication 590-B (2021), Distributions from Individual Retirement Arrangements (IRAs) | irs.gov...