Retirees Missing RMDs, Owing Thousands
Update: 2026-01-04
Description
Vanguards new report highlights a significant issue: many retirement-age investors are neglecting their required minimum distributions (RMDs) from accounts like IRAs, leading to substantial tax penalties. In 2024, 585,000 Vanguard clients failed to take any RMDs, with an average missed amount of $11,600. RMDs typically start around age 73, and missing one results in a 25% penalty, dropping to 10% if caught within a couple of years. Smaller accounts are most affected, with 56.8% of those under $5,000 missing the deadline entirely. Vanguard suggests automating RMDs and consolidating multiple old job accounts to prevent forgetting. Checkout Solipillow.com
The Daily News Now! — Every city. Every story. AI-powered.
Hosted on Acast. See acast.com/privacy for more information.
Comments
In Channel
Download from Google Play
Download from App Store
United States00:00
00:00
x
