What is the penalty for failure to comply with the Required Minimum Distribution? Unfortunately, for Taxpayers who fail to comply with the minimum distribution rules, they would be faced with a stiff penalties. Thus, it is very important that the taxpayers understand these MRD rules to avoid these potential costly penalties.
As a matter of fact, "the IRS can impose a 50% tax penalty on any amount that should have been withdrawn via a minimum required distribution. That 50% tax penalty is in addition to the "regular" federal income tax due on the distribution." |