Are you an investor who's missed the mark on your required minimum distributions (RMDs) for 2025? You're not alone. According to Fidelity, 53% of investors with a required withdrawal for 2025 still haven't taken it. But here's where it gets controversial: while the deadline for RMDs is Dec. 31, many investors are still waiting to make their required withdrawal. And this is the part most people miss: the consequences of not meeting the deadline can be severe, with a penalty of up to 25% of the amount you should have withdrawn. But don't worry, there's still time to get back on track. If you haven't taken your RMD by the due date, you can still file a 'timely correction' within two years, reducing the penalty to 10%. However, the rules for inherited IRAs are 'the biggest landmine' in 2025, according to certified financial planner Scott Van Den Berg. Since 2020, certain inherited accounts are subject to the '10-year rule', which means heirs must deplete the balance by the 10th year after the original account owner's death. So, if you're an investor who's missed the mark on your RMDs, don't panic. Take action as soon as possible to avoid penalties and ensure you're in compliance with the IRS rules. Remember, the IRS is willing to work with you when you're doing the right thing.
