What happens if I miss a required distribution?

Question

At the moment, I am approaching the age when required distributions matter for at least one retirement account. At the moment, I do not need all of the money for current expenses and am trying to understand the rules before the first deadline arrives. At the moment, the decision could affect roughly $28,000 in my situation, so I want to compare the tradeoffs instead of using a rule of thumb.

Soradin · Accepted Answer

A tax may apply, and correction steps and relief can depend on timing and circumstances. When the options are compared, required minimum distribution rules determine when many retirement account owners and beneficiaries must withdraw money. This choice makes more sense when it is tested against the rest of the household plan, instead of treating the account or product as a stand alone decision.

What happens if I miss a required distribution?

Soradin

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