Penalty For Missed RMDs Is Reduced; Why You Should Care

If you have been following my posts on required minimum distributions from retirement accounts over the last few years, I have an important update to share with you.

RMDs are mandated IRA distributions that start at a certain age (currently age 73) – or any age for those who inherited IRAs or other tax-deferred retirement accounts. Missing all or part of an RMD is costly, due to a steep penalty (excise tax).