Do you have any undistributed required minimum distributions (RMDs) from prior tax years? Under previous rules, failure to distribute your full RMD could result in a 50% excise tax. Secure 2.0 Act reduces penalties for those failing to withdraw their required minimum distribution to 25%. The penalty can be further reduced to 10% by correcting your RMD within two years. You may also request to waive your penalties by filling out Form 5329 for the IRS.
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