The IRS has issued a notice reminding retirees aged 73 and older to take required withdrawals from retirement accounts before a Dec. 31 deadline or face the prospect of hefty penalties.
The agency said in a Dec. 10 notice that required minimum distributions (RMDs) must be taken annually from traditional IRAs, 401(k)s, and other retirement plans. Failure to do so subjects the plan owner to a 25 percent excise tax on the amount not withdrawn, though the penalty drops to 10 percent if the shortfall is corrected within two years.
