April 28, 2023
Tax Director Ted Ginsburg spoke with Forbes on how Roth IRA owners can avoid hefty penalties by meeting RMD requirements.
Forbes
By Julie Jason
Excerpt:
Until tax year 2023, the penalty (excise tax) for an RMD shortfall was 50% of the amount of an RMD that was not taken by the end of the calendar year in question. For example, a failure to take a $50,000 RMD resulted in a penalty of $25,000 under the old rules. That 50% penalty is now history. SECURE Act 2.0, which was enacted at the end of 2022 as part of the Consolidated Appropriations Act, 2023, reduced the 50% penalty to 25%, and further to 10% in “certain cases.” If you miss an RMD in 2023, this change in the law applies to you (effective beginning in tax years after Dec. 29, 2022).
