Client Resource Center

Practical answers for your questions

705 Main Street • Pella, IA 50219
Phone: (641) 628-3737

IRA: What if I fail to take my required minimum distribution on time?

Question: What if I fail to take my required IRA distribution on time?

Answer: You'll face a 50% penalty on the amount that should have been withdrawn. Fortunately your investment firm will typically send reminders and you can often ask for an abatement of the penalty. But why put yourself in that position.  Develop a reminder system at the beginning of each year to ensure this does not happen to you.