IRS warns of 50% penalty for failing to make retirement withdrawals

[Gunny]

Somebody needs to remind me again abut all the "freedom" I have. Can't think of much that doesn't have to be approved by the government. I don't think this is what the Founding Fathers intended.


(The Center Square) – Throughout the decades, millions of Americans had small amounts from their paychecks withdrawn – before taxes were deducted – and invested the money in retirement plans.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 is reminding them about required mandatory withdrawals from retirement accounts. Failure to withdraw funds or not taking the minimum required amount could result in a 50% excise tax on the amount distributed, according to the IRS.
If you’re doing some year-end tax planning, are age 72 or were born in 1950 or earlier with a retirement plan, the IRS encourages you to begin making decisions concerning the required minimum withdrawal. Account holders can delay making their first required minimum distribution (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds) until April 1, following the later of the year they reach 72, or when they retire if they have a workplace retirement plan.
entire article: https://www.thecentersquare.com/national/irs-warns-of-50-penalty-for-failing-to-make-retirement-withdrawals/article_1f6565d8-7a6a-11ed-a1c3-eb5556266a7b.html

[fj1200]

Meh. The government giveth tax-deferred retirement accounts, the government maketh rules for tax-deferred retirement accounts.

[Gunny]

Meh. The government giveth tax-deferred retirement accounts, the government maketh rules for tax-deferred retirement accounts.The government taxes us. The government forces us to have insurance. Then the government tells us what we can do with the rest.

This is another one of those "you may be technically correct because the government legislates it so but it still ain't right" things. For what we get from the government in return, every tax dollar it takes is nothing more than highway robbery.

[fj1200]

The government taxes us. The government forces us to have insurance. Then the government tells us what we can do with the rest.

This is another one of those "you may be technically correct because the government legislates it so but it still ain't right" things. For what we get from the government in return, every tax dollar it takes is nothing more than highway robbery.

I think this one makes convoluted sense though. You're only taxed that much if you don't take a calculated amount out of your IRA.

[tailfins]

Somebody needs to remind me again abut all the "freedom" I have. Can't think of much that doesn't have to be approved by the government. I don't think this is what the Founding Fathers intended.

entire article: https://www.thecentersquare.com/national/irs-warns-of-50-penalty-for-failing-to-make-retirement-withdrawals/article_1f6565d8-7a6a-11ed-a1c3-eb5556266a7b.html


Retirement plans are a key ingredient for being judgment-proof. Can the distributions be rolled into annuities? I noticed that ROTH IRAs are not listed in the affected account types.

[Gunny]

I think this one makes convoluted sense though. You're only taxed that much if you don't take a calculated amount out of your IRA.It makes sense only under the premise of agreeing with the government telling me what I can do with the part of the money I earn they don't already take.

Same topic but different type account: My income was taxed when I earned it and my retirement is taxed again. I'm glad I didn't stick it into a separate retirement account so they can get a third shot at it :rolleyes: