The IRS is reminding certain people, age 73 and up, to take required minimum distributions (RMDs) by Dec. 31, to avoid penalties. RMDs are the amounts that many retirement plan and IRA owners must withdraw each year, from accounts including SIMPLE IRAs and SEPs (but not Roth IRAs during the owners’ lifetimes). RMDs are taxable income and may be subject to penalties if not taken by the due dates. Previously, tax law required RMDs to begin at age 72 and imposed a penalty of 50% of the amount that should have been withdrawn but wasn’t. The Secure 2.0 Act raised the age to 73 and lowered the penalty to 25% (10% if the error is corrected in two years). Here’s more: https://bit.ly/48oNYXC
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