Get our guide, “Fixing a missed RMD in 5 Easy Steps” – complete the form at the bottom of this page. (It literally takes only 30 seconds!)
The process to address a missed RMD penalty is in our guide – you’ll not regret getting the guide.
Missing a required minimum distribution from your IRA can be devastating and costly. A missed RMD penalty is 50% of what you were supposed to withdraw from your retirement account. Imagine you’re required minimum distribution (RMD) is $10,000 for a year and you forgot to take the distribution. What might the impact of this be?
Let’s look at this:
$10,000 was what you were to take out of your IRA
$5,000 is the penalty for missing the distribution!
$3,500 is the taxes on the whole amount, assuming 35% for federal and state taxes
1,500 is all you get after that mistake!
I’m trained by Ed Slott and his team. Ed Slott is who the Wall Street Journal calls when they have questions about IRA’s, 401(k)s and pensions.
I’m what Ed Slott calls a Master Elite Adviser*. Simply put, I know more about IRAs and how to avoid making mistakes than any adviser you are likely working with.
Solution:
How do we fix the missed RMD penalty or issue?
It might seem scary at first. We have a comprehensive checklist system that we use. One of the checklists allows us to work with you to correct this issue and possibly even avoid the penalty.
However, you will always have to pay your taxes – can’t help you there!