Fidelity, Vanguard have a warning for anyone taking RMDs
Retirement account withdrawals are forcing investors to sell low—here’s why major firms are sounding the alarm
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The brief
Major retirement plan providers Fidelity and Vanguard have issued warnings about Required Minimum Distributions (RMDs), highlighting risks tied to market volatility. Coverage notes that RMDs for 2026 are calculated based on account balances from 2025, meaning investors may be forced to sell assets at depressed values if markets have declined since last year.
Financial outlets including *thestreet.com*, *Yahoo Finance*, and *Morningstar* emphasize the timing mismatch between RMD calculations and current market conditions. *The Motley Fool* and *24/7 Wall St.* also underscore how this rule can push retirees into unfavorable tax brackets or force liquidation of investments at inopportune moments. Watch for updates on potential legislative or regulatory adjustments to RMD rules, particularly if market downturns persist.
Investors nearing 73 should review their withdrawal strategies, as tax and advisory firms may soon release tailored guidance for 2026 filings.
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Quick answers
What is an RMD?
A Required Minimum Distribution is the annual amount retirees must withdraw from tax-deferred accounts like 401(k)s or IRAs starting at age 73 (as of 2026). The IRS calculates it based on the prior year’s account balance and life expectancy.
Why are Fidelity and Vanguard warning about RMDs now?
Coverage indicates the firms are alerting investors that RMDs for 2026 are tied to 2025 balances. If markets have dropped since then, retirees may face forced sales at lower prices, exacerbating losses.
Can RMD rules change in 2026?
Coverage does not yet specify legislative action, but recent warnings suggest policymakers or regulators may revisit RMD calculations or exemptions amid volatility.
Coverage (5)
- 5 Things You Need to Know About RMDs This Year Morningstar · 13h ago
- I Used to Think RMDs Were a Terrible Thing. Here's Why They're Not So Bad. The Motley Fool · 13h 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. · 13h ago
- 5 Things to Know About RMDs Before You Turn 73 in 2026 Yahoo Finance · 13h ago
- Fidelity, Vanguard have a warning for anyone taking RMDs thestreet.com · 13h ago
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