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Are you aware that there is a 50 percent penalty on the amount of an RMD that should have been taken but wasn't? As an example, let's say you were required to take a minimum distribution of $2,000. Failure to do so triggers the excess accumulation tax. In this case that amounts to $1,000, an amount far in excess of the income taxes that may have been due on the RMD.

Pixy, did you forget that everyone was excused from RMD in 2009 because of the recession? No penalties for anyone for that year. At least I think it was 2009. The years go by...was it 2008? Whatever, the year we all did not have to take RMD's, I didn't either.

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