RMD Deadlines & Penalties: What If You Miss One

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Run the calculator — free, no account required The December 31 deadline explained What happens if you don't take your RMD

The deadline itself is simple: December 31, every year. But the stress around it is anything but simple. You need to confirm your balance, calculate the right amount, contact your custodian, wait for processing, and hope everything settles before the calendar turns. Do it late — or not at all — and the IRS charges a penalty on the shortfall.

The good news: the penalty is significantly lower than it used to be. And if you do miss a deadline, there's a clear process to fix it — one that the IRS has historically been reasonable about. This page covers every deadline you need to know, what the penalties actually look like, and exactly what to do if you've missed one.

If you want to check your numbers before the deadline, the SimpleRMD calculator is free and requires no account.

In short: The annual RMD deadline is December 31. Your very first RMD can be delayed until April 1 of the following year, but that creates a double-up — two taxable distributions in one calendar year. If you miss an RMD or withdraw too little, the IRS charges a 25% excise tax on the shortfall. If you correct it within two years, the penalty drops automatically to 10%. And if you can show reasonable cause, the IRS may waive the penalty entirely. The key form is IRS Form 5329.

On this page

RMD Deadlines at a Glance
The First-Year Decision: Take It Now or Delay?
What Happens If You Miss an RMD
How to Fix a Missed RMD (Form 5329)
Inherited IRA Deadlines
Don't Wait Until the Last Week
Common Deadline Mistakes
Frequently Asked Questions

RMD Deadlines at a Glance

Every RMD deadline falls into one of three categories. Here's the full picture:

Situation	Deadline	What to Know
First RMD (year you turn 73)	April 1 of the following year	You can delay — but you'll owe two RMDs in that second year
Every RMD after that	December 31 of each year	No extensions. No exceptions.
Inherited IRA (10-year rule)	December 31 of each year + account fully emptied by year 10	Annual distributions may be required in years 1–9 if the original owner had started RMDs
Still-working exception (401(k) only)	April 1 of the year after you retire	Only applies to your current employer's plan, and only if the plan allows it. Does not apply to IRAs or if you own 5%+ of the business.

There are no extensions for RMD deadlines. Unlike a tax return, you cannot file for more time. If the distribution doesn't settle by December 31, it's late.

Source: IRS — Retirement Topics: Required Minimum Distributions

The First-Year Decision: Take It Now or Delay?

When you turn 73, you get a one-time option: take your first RMD by December 31 of that year, or delay it until April 1 of the following year. This sounds like a gift, but it comes with a catch that surprises many people.

If you delay, you'll owe two RMDs in the following year — the delayed first one and the current year's — both taxable as ordinary income. That can push you into a higher tax bracket, increase your Medicare premiums (via IRMAA), and affect how much of your Social Security is taxable.

Example: Susan's First-Year Decision

Susan turns 73 in June 2026. Her Traditional IRA had a balance of $420,000 on December 31, 2025. Using the Uniform Lifetime Table, her 2026 RMD is approximately $16,154 (divisor of 26.0 at age 73).

Susan has two options:

	Option A: Take in 2026	Option B: Delay to April 1, 2027
2026 taxable RMD income	~$16,154	$0
2027 taxable RMD income	One RMD (~$16,500, based on 2026 year-end balance)	Two RMDs (~$16,154 + ~$16,500 = ~$32,654)
Tax bracket risk	Spread evenly	Concentrated in 2027
Medicare IRMAA impact	Lower risk	Higher risk in 2027

For many people, Option A — taking the first RMD in the year you turn 73 — is the better move. The tax savings from spreading distributions across two calendar years usually outweigh the benefit of a few extra months of deferral.

Infographic comparing Option A (take first RMD in 2026) versus Option B (delay to April 2027, resulting in two taxable distributions in one year)

Want to see your own numbers? Run the SimpleRMD calculator — it's free and shows the math.

What Happens If You Miss an RMD

If you don't withdraw enough — or miss the deadline entirely — the IRS imposes an excise tax on the shortfall. The penalty structure has changed significantly in recent years, and it's worth understanding exactly how it works.

The Current Penalty Structure (SECURE 2.0)

Situation	Penalty	How It Works
Missed or insufficient RMD	25% excise tax on the shortfall	Calculated on the difference between what you should have withdrawn and what you actually withdrew
Corrected within the correction window	Automatically reduced to 10%	Withdraw the shortfall, then file Form 5329. No waiver letter needed — the reduced rate applies automatically.
Reasonable cause waiver	Potentially $0	File Form 5329 with a letter explaining the circumstances. The IRS may waive the penalty entirely.

These rates apply to both standard RMDs (original account owners) and inherited IRA required distributions — including annual distributions under the 10-year rule, which are now fully enforced starting in 2025.

The "correction window" runs until the earliest of: (1) the date the IRS mails a notice of deficiency, (2) the date the IRS assesses the tax, or (3) the last day of the second taxable year after the year the excise tax was imposed. In practice, this typically gives you roughly two years from the year of the miss to catch and correct the error before the window closes.

How the Penalty Changed

Before SECURE 2.0 took effect (for tax years beginning after December 29, 2022), the excise tax for a missed RMD was 50% — one of the steepest penalties in the tax code. The reduction to 25% (and 10% with timely correction) was a significant change.

If you see older articles or calculators referencing a 50% penalty, that rate no longer applies. The current rates are 25% and 10%.

The Most Important Thing If You've Missed One

Don't panic. Take the distribution as soon as possible.

The single best thing you can do is withdraw the shortfall immediately. Every scenario — whether you're seeking the 10% reduced rate or a full waiver — starts with actually taking the money out. Then file Form 5329 (covered in detail below). The IRS has historically been reasonable about waiving penalties when the error is corrected promptly and there's a legitimate explanation.

Source: IRS — RMD FAQs (penalties and corrections)

How to Fix a Missed RMD (Form 5329)

IRS Form 5329 ("Additional Taxes on Qualified Plans and Other Tax-Favored Accounts") is the form you use to report a missed RMD and, if applicable, request a penalty reduction or waiver. This is not optional — if you missed an RMD, this form needs to be filed.

Step-by-Step Overview

Take the missed distribution immediately. Contact your custodian and withdraw the shortfall as soon as you realize it was missed. Don't wait to file the form first.
Get the correct year's Form 5329. The IRS publishes a version for each tax year. Use the form for the year the RMD was required, not the year you're correcting it. For example, if you missed your 2025 RMD and are withdrawing the shortfall in 2026, you still file the 2025 Form 5329. (The IRS website has forms going back decades.)
Complete Part IX (Additional Tax on Excess Accumulations). This is the section that covers missed RMDs. The key lines:
- Line 52: Enter your required RMD amount
- Line 53: Enter the amount you actually withdrew during the tax year
- Line 54: The penalty calculation — this depends on your situation (see scenarios below)
- Line 55: The tax owed
If requesting a waiver: Write "RC" (reasonable cause) on line 54 and enter the amount you're requesting to be waived. Enter $0 on line 55. Attach a brief letter explaining what happened and what you've done to fix it.
File the form. Attach it to your federal tax return for the year the RMD was missed. If you've already filed that return, you may need to file an amended return (Form 1040-X) with the 5329 attached. If you're requesting a full waiver, Form 5329 with the waiver request must typically be printed and mailed — it cannot always be e-filed.

Three Scenarios: What You'll Actually Owe

The penalty you face depends on how quickly you correct the error and whether you have a reasonable explanation.

Scenario 1: Reasonable cause + timely correction = potentially $0

Margaret, age 76, missed her 2025 RMD of $12,000 due to a serious illness. She realized the error in February 2026, withdrew the full $12,000 immediately, and filed Form 5329 with a letter explaining her hospitalization. She wrote "RC" on line 54, entered $0 on line 55, and attached a brief explanation.

Result: The IRS reviewed her request and waived the penalty entirely.

Scenario 2: No reasonable cause, but corrected within 2 years = 10%

Robert, age 79, simply forgot to take his 2025 RMD of $8,000. He realized the mistake in early 2026 and took the distribution immediately. He didn't have a strong "reasonable cause" argument, but he corrected it within the correction window.

Robert filed Form 5329 and reported the 10% reduced rate. His penalty: $800 (10% of $8,000). No waiver letter was needed — the reduced rate applied automatically because he corrected the error within the window.

Scenario 3: No correction within the window = 25%

Frank, age 83, missed his 2023 RMD of $6,400 and didn't realize it until 2026 — after the correction window had closed. Frank owed the full 25% excise tax: $1,600 (25% of $6,400). He filed a 2023 Form 5329 with his tax professional's help and paid the penalty.

Even in Frank's case, taking the distribution and filing the form was the right move. Ignoring a missed RMD doesn't make it go away — it makes it worse.

Flowchart showing how to fix a missed RMD — withdraw the shortfall immediately, then determine penalty based on correction window timing and reasonable cause

What Counts as "Reasonable Cause"?

The IRS doesn't publish a definitive list, but situations that have supported successful waiver requests include:

Serious illness or hospitalization
Mental incapacity or cognitive decline
Death of a family member (especially when it disrupted the management of finances)
Custodian error (the institution made a mistake or failed to process a timely request)
Reliance on incorrect professional advice
A genuine, first-time misunderstanding of complex rules — particularly the post-SECURE Act inherited IRA requirements, which confused even professionals for years

The key elements the IRS looks for: (1) a legitimate reason the error occurred, and (2) evidence that you've already corrected it or are taking steps to correct it.

Source: IRS Form 5329 Instructions

Inherited IRA Deadlines

Inherited IRAs follow the same December 31 annual deadline, but the rules around what is required are more complex — and the stakes have recently increased.

If you inherited an IRA from someone who died after 2019, you're most likely subject to the 10-year rule: the entire account must be emptied within 10 years of the original owner's death. Whether you must take annual distributions during those 10 years depends on whether the original owner had already started taking their own RMDs.

The Penalty Waiver Has Ended

From 2021 through 2024, the IRS waived penalties for beneficiaries who missed annual distributions under the 10-year rule while the regulations were being finalized. That grace period ended on December 31, 2024. Starting in 2025, the standard 25%/10% penalty structure applies to missed inherited IRA distributions — no more automatic waivers. If you miss a required inherited IRA distribution in 2025 or later, you'll need to correct it and file Form 5329 just like any other missed RMD.

If you inherited an IRA in 2020–2023 and haven't been taking annual distributions, the 10-year clock has been running. Check where you stand now.

Key Inherited IRA Deadlines

Situation	What's Required	Deadline
Owner died after RBD (had started RMDs)	Annual RMDs in years 1–9, full depletion by year 10	December 31 each year
Owner died before RBD (hadn't started RMDs)	No annual RMDs required, but full depletion by year 10	December 31 of the 10th year
Eligible designated beneficiary (spouse, minor, disabled)	Life expectancy-based distributions	December 31 each year
Inherited Roth IRA	No annual RMDs required (owner treated as dying before RBD), but full depletion by year 10	December 31 of the 10th year. The 25% excise tax still applies if the account isn't emptied on time — even though the distributions themselves are tax-free.

The 10-year clock was not paused during the IRS waiver years (2021–2024). Those years still count toward the 10.

For the full picture on inherited IRA rules, timelines, and calculations, see our complete guide: Inherited IRA RMD rules · The 10-year rule explained

Source: IRS Final Regulations T.D. 10001 (July 2024)

Don't Wait Until the Last Week

Every November I start feeling the familiar RMD pressure — the same pressure I've felt for over a decade. It always arrives alongside the holidays, year-end financial tasks, and everything else competing for attention. These pointers come from having lived through that cycle many times.

This is practical, not dramatic: custodian processing times are a real risk, especially in late November and December.

What can go wrong:

Distribution requests can take 3–7 business days to process under normal conditions.
During peak season (November–December), some custodians experience backlogs that push processing to 10–14 business days.
If your request has any errors — wrong account number, missing signature, incomplete form — it goes back to the beginning of the queue.
Wire transfers may settle faster, but check or ACH distributions can add additional days.

What you can do:

Submit your distribution request no later than early December — mid-November is safer.
Confirm with your custodian how long processing typically takes and whether there's a year-end cutoff date.
Ask whether your custodian offers automatic RMD distributions. Some will calculate and distribute your RMD automatically each year. This doesn't relieve you of the responsibility to verify the amount, but it removes the risk of forgetting.
Keep written confirmation (email or letter) of your distribution request, including the date submitted.

If your custodian fails to process a timely request due to their own error, that may support a reasonable cause argument on Form 5329 — but it's far better to avoid the situation entirely.

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Common Deadline Mistakes

Waiting until the last week of December. Processing takes time. If your custodian hits a backlog and the withdrawal doesn't settle by December 31, you've missed the deadline — even if you submitted the request on time.
Forgetting the first-year double-up. Delaying your first RMD to April 1 means two taxable distributions in one calendar year. For many people, taking the first RMD in the year they turn 73 is the better move.
Not knowing that 401(k) RMDs can't be aggregated. If you have multiple IRAs, you can calculate each RMD separately and take the total from just one IRA. But 401(k) RMDs must be taken from each 401(k) individually. This catches people who consolidate their IRA strategy but still have old employer plans.
Assuming your custodian or broker handles it. Some custodians send reminders. A few will even calculate your RMD. But most don't verify the number, and none guarantee it's correct. The responsibility is always yours. See: Does my accountant calculate my RMD?
Ignoring inherited IRA annual requirements. Many beneficiaries assume they can wait until year 10 to withdraw everything. If the original owner had already started RMDs, annual distributions are required in years 1–9 — and the penalty waiver for this has ended.
Not filing Form 5329 after a miss. Some people take the late distribution but never file the form. Without Form 5329, you can't claim the 10% reduced rate or request a waiver. And the statute of limitations doesn't start running until you file.
Assuming there's an extension. There isn't. Unlike a tax return, you cannot request additional time for an RMD. December 31 means December 31.

Frequently Asked Questions

Can I get an extension on my RMD deadline?

No. There is no extension process for RMDs. The December 31 deadline is firm for all annual RMDs. The only exception is your very first RMD, which can be delayed until April 1 of the following year — but this is a one-time option, not an extension, and it creates the double-up described above.

What if my custodian made the error?

If your custodian failed to process a timely distribution request, that's a strong basis for a reasonable cause waiver on Form 5329. Document everything: when you submitted the request, any confirmation you received, and any communication about the delay. Take the distribution as soon as possible, then file the form with your explanation.

Does the penalty apply to inherited Roth IRAs?

Yes. Even though inherited Roth IRA distributions are generally tax-free, the 10-year rule still applies. If you fail to empty the account by the end of year 10, the 25% excise tax applies to the remaining balance. The penalty is on the amount that should have been distributed — not on the tax owed (since there often is no tax on Roth distributions). See: Inherited IRA RMD rules

What counts as "reasonable cause" for a penalty waiver?

The IRS evaluates each case individually. Common reasons that have supported successful waivers include serious illness, hospitalization, cognitive decline, custodian error, death of a family member, and genuine misunderstanding of complex inherited IRA rules. The IRS looks for a legitimate reason and evidence that you've already corrected the shortfall. See: IRS waiver for missed RMDs

What if I missed an RMD from several years ago?

You should still correct it. Take the distribution, then file Form 5329 for the year(s) you missed using that year's version of the form. If you correct it within the correction window (roughly two years), the 10% rate applies. If the window has closed, the 25% rate applies — but you can still request a reasonable cause waiver. Work with your tax professional, especially if multiple years are involved.

What if I missed RMDs for multiple years?

File a separate Form 5329 for each year you missed, using that year's version of the form. Take each missed distribution as soon as possible. The IRS evaluates penalty reductions and waivers on a per-year basis, so a correction within the window for one year might qualify for the 10% rate while an older miss might not. Multi-year situations can get complicated — this is a case where working with a tax professional is especially worthwhile.

Is the penalty based on the full RMD or just the shortfall?

Just the shortfall. If your RMD was $10,000 and you withdrew $7,000, the penalty is calculated on the $3,000 you didn't withdraw — not the full $10,000.

How do I know if I need to take an RMD this year?

If you are 73 or older (or turned 73 this year) and have tax-deferred retirement accounts, the answer is almost certainly yes. If you inherited an IRA from someone who died after 2019, check whether annual distributions are required based on the original owner's status. Run the calculator

Ready to check your numbers before the deadline?

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The December 31 deadline explained
What happens if you don't take your RMD
IRS waiver for missed RMDs
Late RMD distributions — what to do
Inherited IRA? Start here
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This article is for informational purposes only and does not constitute tax, legal, or financial advice. IRS rules and tax laws are subject to change. Consult a qualified tax professional or financial advisor for guidance specific to your situation. SimpleRMD is a calculation and tracking tool — not a financial advisory service.

Sources: IRS.gov (Retirement Topics: RMDs, Publication 590-B, RMD FAQs, Form 5329 Instructions). IRS Final Regulations T.D. 10001 (July 2024). IRS Notices 2022-53, 2023-54, 2024-35. SECURE 2.0 Act of 2022 (Pub. L. 117-328). Rules confirmed current as of February 2026.

RMD Deadlines and Penalties: What Happens If You Miss One