IRS Warns of 50 Percent Penalty for Failing to Make Retirement Withdrawals


Throughout the decades, millions of Americans had small amounts from their paychecks withdrawn—before taxes were deducted—and invested the money in retirement plans.

As those taxpayers retire or plan for retirement, the Internal Revenue Service reminds them about required mandatory withdrawals from retirement accounts. According to the IRS, failure to withdraw funds or not taking the minimum required amount could result in a 50 percent excise tax on the amount distributed.

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