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What is the penalty for NOT taking the RMD by the deadline? The amount not distributed...

What is the penalty for NOT taking the RMD by the deadline? The amount not distributed is assessed a 10% penalty. The taxpayer is not eligible to contribute to a traditional IRA for three years. The amount not distributed is assessed a 50% penalty. The taxpayer may not claim the Saver's Credit for three years.

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Answer #1

Answer :

The correct answer is underlined as under :

The amount not distributed is assessed a 50% penalty.

Explanation :

If an account owner fails to withdraw a required minimum distribution, fails to withdraw the full amount of the required minimum distribution, or fails to withdraw the required by the applicable deadline, the amount not withdrawn is taxed at 50.

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