1 in 3 retirees faces an RMD tax penalty. Here's how advisors help fix it

For many financial advisors, the required minimum distribution (RMD) is often treated as a minor, once-a-year administrative task. But for roughly 1 in 3 RMD-age clients who either missed a distribution or withdrew too little, that oversight can turn into a costly mistake come tax time, Vanguard research shows. Analyzing roughly 400,000 RMD-age clients with Vanguard traditional IRA balances of at least $5,000, researchers found that 6.7% failed to take a required distribution in 2024 (the most recent dat ...