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Image source: Getty Images. 1. Missing the deadline. It might sound simple -- you need to take each year's required distribution before the deadline -- but these things have a way of becoming more ...
The penalties for taking an incorrect RMD can be steep. Knowing the rules is half the battle. ... Avoid These 3 Common Required Minimum Distribution (RMD) Mistakes ... October 8, 2024 at 5:10 AM ...
The RMD is calculated by dividing the balance of your retirement account at the end of the previous year (2023) by your "distribution period" -- a number the IRS sets based on your age.
Required minimum distributions (RMDs) -- the mandatory annual withdrawals seniors have to take from most retirement accounts beginning in the year they turn 73 -- can sound like a big deal. After ...
So in the case of two 401(k)s, one with a $4,000 RMD and one with a $6,000 RMD, your only choice to avoid the penalty would be to withdraw at least $4,000 from the first and at least $6,000 from ...
For example, say you have two IRAs, one with a $5,000 RMD and one with a $7,000 RMD. You could take $12,000 from one, $6,000 from each, or any combination you like as long as you withdraw at least ...
So if you have two 401(k)s, one with a $5,000 RMD and another with a $3,000 RMD, you can only take $5,000 from the first and $3,000 from the second to avoid IRS penalties.
3. Workplace retirement plans have an RMD exception. If you have a retirement plan at work, such as a 401(k) or 403(b), there’s an important RMD exception.