Americans aged 73 and older have until December 31, 2024, to take their required minimum distributions (RMD) for the year or risk facing a penalty from the IRS. At age 73, you’re required to start withdrawing a certain amount from your retirement accounts each year. According to Fidelity, the IRS penalty for not taking an RMD or for taking less than the required amount is 25% of the amount not taken on time. Wealth host Brad Smith speaks to Fidelity Investments Vice President of Retirement Products Rita Assaf about how an RMD is calculated and why some people don’t take it. “A lot of the times, they forget. And one of the complexities that actually comes up is the fact that they have retirement accounts with multiple providers. So they may not realize that they have to take RMDs from different accounts with multiple providers, and that adds to the confusion,” Assaf says. Fidelity found that 48% of RMD-eligible IRA customers have not taken any amount from their IRAs toward satisfying their RMD for 2024.
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