Retirement Blog

Uncle Sam and RMDs

May 19, 2022

rmd penalty

Did you know you could be hit with a tax penalty of up to 50% for missing RMD deadlines? For example, if you were supposed to take out $15,000 but only took $11,000, you’d owe a $2,000 tax penalty plus income tax on the shortfall.1

The good news is there is a chance this penalty can be forgiven. You can request relief by filing Form 5329, with a letter of explanation including the action you took to fix the mistake.1

RMDs are inevitable, but you can take steps to help protect what you’ve worked hard to save. Contact us with any questions you may have or to schedule a complimentary consultation!