RMD Deadline: Avoid Costly Mistakes
Update: 2025-11-24
Description
As December nears, older Americans must meet a critical deadline: required minimum distributions (RMDs) from retirement accounts. Financial experts caution against mistakes, as they can be costly. Once seventy-three, RMDs are mandatory from pre-tax accounts, with the amount based on balances, age, and IRS life expectancy. The first RMD is due by April first of the year following seventy-three, with December thirty-first the deadline for subsequent withdrawals. Failing to comply can result in IRS penalties. Complexity of rules often leads to errors, with millions of retirees struggling to navigate. Penalties for not taking the full RMD by the due date are twenty-five percent, but can be reduced to ten percent if corrected within two years. Starting early and maintaining a master list of accounts can help avoid common mistakes.
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