Question: what is the tax penalty for not taking a required minimum distribution?
Answer: Failure to take RMDs on time results in a 50% tax penalty. Taxpayers often make mistakes by taking the wrong RMD amount, taking an RMD from the wrong account, the wrong type of account, or missing an RMD completely. The IRS often grants penalty relief for missed RMDs when they are self-reported and rectified promptly.