Vanguard research reveals $1.7 billion in annual RMD penalties as 7% miss 2024 withdrawals
Updated
Updated · The Motley Fool · Apr 26
Vanguard research reveals $1.7 billion in annual RMD penalties as 7% miss 2024 withdrawals
10 articles · Updated · The Motley Fool · Apr 26
Vanguard reports that 7% of its IRA holders failed to take required minimum distributions (RMDs) in 2024, resulting in average penalties exceeding $1,100 per person.
The IRS imposes a 25% penalty on missed RMD amounts, which can be reduced to 10% if corrected within two years, contributing to $1.7 billion in annual penalties.
RMD rules differ between 401(k)s and IRAs, and missing withdrawals can be a costly mistake for retirees, highlighting the importance of understanding and managing RMD obligations.
Billions are lost to RMD penalties. Is the complex system unintentionally designed for retirees to fail?
Beyond simple reminders, what should financial firms do to stop the $1.7 billion RMD penalty problem?
With RMDs looming, is a Roth conversion in 2026 the best way to defuse your retirement 'tax bomb'?
Inherited an IRA? The rules changed in 2025. Are you certain you know your required withdrawal schedule?
Can a charitable distribution from your IRA truly shield your Social Security benefits from higher taxes this year?
If you are still working past age 75, can you legally skip required withdrawals from your current 401(k)?