IRS Warns of 50 Percent Penalty for Failing to Make Retirement Withdrawals

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IRS Warns of 50 Percent Penalty for Failing to Make Retirement Withdrawals

Throughout the decades, millions of Americans had small amounts from their paychecks withdrawn—before taxes were deducted—and invested the money in retirement plans.
As those taxpayers retire or plan for retirement, the Internal Revenue Service is reminding them about required mandatory withdrawals from retirement accounts. Failure to withdraw funds or not taking the minimum required amount could result in a 50 percent excise tax on the amount distributed, according to the IRS.
If you're doing some year-end tax planning, are age 72 or were born in 1950 or earlier with a retirement plan, the IRS encourages you to begin making decisions concerning the required minimum withdrawal. Account holders can delay making their first required minimum distribution until April 1, following the later of the year they reach 72, or when they retire if they have a workplace retirement plan....

Source: IRS Warns of 50 Percent Penalty for Failing to Make Retirement Withdrawals

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