Avoid common mistakes when taking required minimum distributions to avoid IRS penalties.

From NASDAQ.: 2025-02-15 18:00:00

Most Americans 73 and older have almost 11 months left to take their 2025 required minimum distributions (RMDs), but those who turned 73 last year may still need to sort out their 2024 RMD. The government requires these withdrawals from select retirement accounts to collect taxes, but they can be confusing for newcomers. To avoid IRS penalties, it’s important to take RMDs on time, not take them when unnecessary, and consider donating them to charity through a qualifying charitable distribution (QCD).

Taking RMDs when you don’t have to can increase your tax bill and limit potential savings growth. You may not need to take RMDs from Roth accounts or workplace retirement plans if you’re still employed. Consider consulting a tax professional for personalized advice on your 2024 RMD requirements and strategies to minimize tax liabilities. Remember, proper planning and execution can help you make the most of your retirement savings.



Read more at NASDAQ.: Avoid These 3 Common Required Minimum Distribution (RMD) Mistakes