What Happens if You Miss the Rmd Deadline?

Marguerita-Cheng-3-What is a required minimum distribution RMD

In this video, Marguerita Cheng explains that required minimum distributions (RMDs) are mandatory withdrawals from retirement accounts starting at age 72, and failing to take them results in a 50% penalty on the amount not withdrawn.
Video Transcript

A required minimum distribution or RMD is exactly that. It is a required distribution from retirement accounts.

RMDs kick in or begin at age seventy two. In the past, the RMD age was seventy point five. So what that means is that at age seventy two, you need to start taking money out of your retirement accounts. What happens if you don't take the money out? You will incur a fifty percent penalty of the amount that you should have withdrawn.