Required Minimum Distributions: The Age, the Deadline and the Penalty
Recent law changes pushed back the age when withdrawals must begin. The calculation and deadlines still trip people up.
By Thomas Vance, Contributing Writer, Taxes and Housing
Published 5 min read
Under the SECURE 2.0 Act, required minimum distributions from traditional IRAs and most workplace plans generally begin at age 73, rising to 75 for people who turn 74 after 2032.
Missing a required distribution can lead to an excise tax of 25 percent of the shortfall, which may be reduced to 10 percent if the error is corrected within the allowed window.
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Contributing Writer, Taxes and Housing
Thomas Vance writes about retirement taxes, required distributions and housing costs for older homeowners.
