Excess-Accumulation Penalty
The penalty a retirement account owner or the beneficiary of a retirement account must pay when he or she fails to distribute a minimum amount due for a year from the retirement account. Investopedia Says:
The failure to distribute this amount will result in the individual being subject to an excess accumulation penalty of 50 percent of the amount not distributed from the account. This amount is then owed to the IRS. Related Terms:
401(k) Plan
Individual Retirement Account - IRA
Internal Revenue Service - IRS
Pension Plan
Required Minimum Distribution - RMD
Roth IRA |