Required Minimum Distribution (RMD) rules for tax-deferred retirement accounts
RMD Resmed Inc
$235.30 -1.68%
View chart & analysis → - 1Account holders must withdraw the Required Minimum Distribution from tax-deferred retirement accounts by the RMD deadline of December 31 each year.
- 2Those who do not withdraw the RMD before the deadline will face an excise tax at a penalty rate of 25% of the unwithdrawn amount.
- 3If the error is corrected within 2 years, a reduced penalty rate of 10% of the unwithdrawn amount will apply.
So what's the key point?
Money must be withdrawn from retirement accounts by a specific date. If not withdrawn on time, a penalty of 25% of the unwithdrawn amount must be paid.
Source The Motley Fool +1 · View original ↗
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