Skip your required minimum distribution and the IRS charges a 25% penalty on the amount you failed to withdraw — $5,000 extra on a $20,000 RMD, on top of the income tax you still owe when you take it. At age 73, the IRS divides your balance by 26.5, so a $250,000 traditional IRA means about $9,434 must come out this year. Roth IRAs have no RMDs while the owner is alive. Fixing a missed RMD fast can cut the penalty to 10%, and your first RMD can wait until April 1 — but then two withdrawals land in one year. Take the full amount by December 31. Follow US Money Guide for daily money tips!
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Educational content, not financial advice.
