Fidelity, Vanguard have a warning for anyone taking RMDs
Financial giants Fidelity and Vanguard are warning retirees about the potential pitfalls of taking Required Minimum Distributions (RMDs).
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The brief
Retirees turning 73 in 2026 are facing critical considerations regarding Required Minimum Distributions from their IRAs. The primary concern centers on how these withdrawals are calculated and the subsequent impact on tax and healthcare costs.
Coverage from thestreet.com, MSN, and Yahoo Finance emphasizes that first-time RMDs can push taxpayers past the IRMAA cliff for a full year. Additionally, 24/7 Wall St. notes that because RMDs are locked to the previous year's balance, investors may be forced to sell stocks at the bottom during market drops.
Future attention will likely focus on the five key factors retirees need to know about RMDs this year, as highlighted by Morningstar and Yahoo Finance.
Synthesized by Archynetys from the headlines below under a strict no-invention contract. ✓ fact-checked: all claims supported by sources Updated 6h ago.
Quick answers
What is the warning from Fidelity and Vanguard?
They have issued a warning for individuals taking Required Minimum Distributions (RMDs).
How can RMDs affect healthcare costs?
According to MSN, a first required IRA withdrawal at age 73 can push a person past the IRMAA cliff for a full year.
What is the risk during a market downturn?
As reported by 24/7 Wall St., since RMDs are based on the previous year's balance, investors may be forced to sell stocks when the market is low.
Coverage (8)
- Your First Required IRA Withdrawal at 73 Can Push You Past the IRMAA Cliff for a Full Year 24/7 Wall St. · 1d ago
- Grant Thompson column: Required distributions from retirement accounts can be big adjustment Herald Bulletin · 1d ago
- Your first required IRA withdrawal at 73 can push you past the IRMAA cliff for a full year MSN · 1d ago
- 5 Things You Need to Know About RMDs This Year Morningstar · 1d ago
- I Used to Think RMDs Were a Terrible Thing. Here's Why They're Not So Bad. The Motley Fool · 1d ago
- A 73-Year-Old's RMD Is Locked to Last Year's Balance. When the Market Drops, He's Forced to Sell Stocks at the Bottom. 24/7 Wall St. · 1d ago
- 5 Things to Know About RMDs Before You Turn 73 in 2026 Yahoo Finance · 1d ago
- Fidelity, Vanguard have a warning for anyone taking RMDs thestreet.com · 1d ago
Topics
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