Story perspectives
Retirees Face 25% Penalties for Missed RMDs
12/31/2025
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Story summary
- RMDs from pretax accounts carry penalties up to 25% for non-compliance.
- Retirees must begin RMDs at age 73, with the first due by April 1 after turning 73.
- Heirs of inherited IRAs must also follow RMD rules.
- In 2024, 6.7% of Vanguard investors missed an RMD.
- Experts say timely correction can reduce penalties to 10% or eliminate them.
