5. Common Mistakes to Avoid When Taking Your IRA RMD
- Forgetting to take an RMD: If you miss an RMD, the IRS can impose a substantial punishment, regularly 50% of the sum that should have been withdrawn.
- Withdrawing too much: While meeting the RMD is essential, taking more than the required amount can unnecessarily increase your taxable income.
- Failing to take the RMD from each account: If you have multiple IRAs, you must take an RMD from each one (unless you have a SIMPLE IRA or SEP IRA).
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