All articles tagged with #tax penalties
Many elderly Vanguard clients are failing to take required minimum distributions (RMDs) from their retirement accounts in 2024, leading to potential tax penalties of up to 25%. Vanguard recommends automating withdrawals and consolidating accounts to prevent missed RMDs and avoid unnecessary taxes.
Many investors, especially self-directed ones with small balances, miss their required minimum distributions (RMDs) from IRAs, leading to potential tax penalties totaling up to $1.7 billion annually. Vanguard estimates that 6.7% of IRA holders aged 73+ missed RMDs in 2024, with larger account holders facing higher penalties. Automating RMDs and consolidating accounts can help prevent these costly mistakes.