rmd penalty for not taking enough out.

posted

It depends. Normally the penalty is 25% of the shortfall (the difference between what you should have taken and what you actually took).

If you correct the error within two years (or before the IRS sends you a bill), the penalty is 10%. However, if you can show reasonable cause like a serious illness, a death in the family, or a bank error, the IRS may waive the penalty.

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I LIVE IN NJ RECEIVE PENSION FROM AZ AND AZ WITHHOLDS AZ TAX, MY INCOME FROM AZ IS 5600. SO NOT TAXABLE DO I STILL HAVE TO FILE/PAY AZ TAX. CAN AZ STOP TAKING THE AZ TAX OUT OF PENSION?

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rmd penalty for not taking enough out.