Missing a required minimum distribution doesn’t just create a small paperwork hiccup—it can trigger one of the steepest tax penalties in the retirement world. The IRS expects you to take your required withdrawals on schedule, and it doesn’t accept “I forgot” as a valid excuse.
That reality surprises plenty of retirees who assume a simple oversight won’t cost much. In truth, RMD penalties can quickly eat into your hard-earned savings if you don’t act fast. Knowing how these penalties work—and how to avoid them—can save you thousands.
