[fwdude]

You will be hit with a fifty percent penalty if you do not take RMD as required by law.

50% of what, exactly?

[riverdawg]

50% of the required minimum distribution. For example, if you are required to withdraw $4000 per month from your retirement plan accumulation, the penalty is $2000 per month until,you comply.

[DFG]

50% of the RMD the taxpayer was required to take in that tax year.

[DugwayDuke]

The Required Minimum Distribution (RMD) is a percentage of the value of the tax deferred savings account. If the RMD is 3.25% and you have $100,000 in a 401k, then the amount you must withdraw is $3250. The RMD generally increase year after year. If you only withdraw the RMD annually, you’ll still have money in your account when you’re over 100 years old.

If you fail to take the RMD, then there is a penalty on the amount you didn’t with draw. Suppose in the example above, you were supposed to remove $3250 and only removed $2250, then the penalty would apply to the $1000 and you would owe the IRS 50% or $500.

[kempster]

50% of the amount you should have taken out.