Missed RMD Penalty Calculator: How Much You Owe and How to Fix It
Quick Answer
The penalty for a missed RMD is 25% of the amount you should have withdrawn. It drops to 10% if you take the missed amount and file a return reflecting the tax inside the correction window, which generally ends on December 31 of the second year after the tax year. You can also ask the IRS to waive it for reasonable cause on Form 5329.
Example: a required $20,000 with $12,500 withdrawn leaves a $7,500 shortfall. That is $1,875.00 at 25% or $750.00 at 10%.
Sources: Instructions for Form 5329, IRS Notice 2024-35
The calculator shows the tax the rules produce. It cannot predict whether the IRS will grant a waiver, and it does not add interest or other penalties that may apply if tax is assessed.
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How the Missed RMD Penalty Is Calculated
The IRS calls it an excise tax on "excess accumulation," which is just the amount left in the account that should have come out. The math has two steps.
- Find the shortfall. Required distribution minus the amount you actually took by the deadline. Taking more than required in a different year does not make up for it.
- Apply the rate. 25% of the shortfall, or 10% if you correct it in the window.
The tax applies only to the shortfall. Someone who took most of the RMD and missed a small part owes tax only on that small part.
| Amount missed | Tax at 25% | Tax at 10% (corrected in time) | Difference |
|---|---|---|---|
| $2,500 | $625 | $250 | $375 |
| $10,000 | $2,500 | $1,000 | $1,500 |
| $25,000 | $6,250 | $2,500 | $3,750 |
| $50,000 | $12,500 | $5,000 | $7,500 |
| $100,000 | $25,000 | $10,000 | $15,000 |
Notice the difference column. Correcting inside the window is worth 15 cents on every dollar missed, so the sooner you act, the more of the penalty you avoid.
The Correction Window: When Does the 10% Rate Stop?
The lower rate has two conditions, and both must be met during the correction window: you must receive a distribution of the missed amount, and you must submit a return that reports the tax. The window ends on the earliest of three events.
- The IRS mails a notice of deficiency for the tax.
- The IRS assesses the tax.
- The last day of the second tax year that begins after the end of the tax year in which the tax is imposed.
For most people the third date comes first. The table shows how it plays out for each missed year, for a distribution that was due by December 31.
| RMD for year | Deadline | Tax year | 10% window ends |
|---|---|---|---|
| 2022 | December 31, 2022 | 2022 | December 31, 2024 |
| 2023 | December 31, 2023 | 2023 | December 31, 2025 |
| 2024 | December 31, 2024 | 2024 | December 31, 2026 |
| 2025 | December 31, 2025 | 2025 | December 31, 2027 |
| 2026 | December 31, 2026 | 2026 | December 31, 2028 |
The first-year April 1 trap
If you delayed your first RMD to April 1 and then missed it, the deadline falls in the next year, so the tax year moves too. For a first RMD for 2025 the deadline is April 1, 2026, the tax year is 2026, and the window runs through December 31, 2028. The same delay also means you owe two distributions in one calendar year, which is why many people take the first one by December 31 instead.
How to Ask the IRS to Waive the Missed RMD Penalty
The IRS can waive part or all of the tax when the shortfall was due to reasonable error and you are taking reasonable steps to remedy it. The waiver request goes on the same form that reports the tax, Form 5329.
- Take the missed distribution first. The request depends on showing you are fixing the problem, so the withdrawal should already be done, with the date on your custodian's statement.
- Complete the required-amount and distribution lines. Enter the RMD and what you actually took. The difference is the excess accumulation.
- Write "RC" and the amount. Put "RC" and the shortfall you want waived, in parentheses, on the dotted line next to the excess accumulation line, and subtract it from the total.
- Attach a statement of explanation. Say what went wrong and what you did to fix it (see below).
- Pay what is left. The instructions say to pay any tax reported on line 55. The IRS decides on the waiver and notifies you of any remaining tax.
File a separate Form 5329 for each year you missed. If the form for that year has different line numbers than the one above, use the form for that year.
What your explanation should cover
There is no official wording, and a short, factual letter works better than a long one. The IRS looks for reasonable error and reasonable steps to correct it, so write about those.
- What happened, in facts. For example, a custodian statement showed the wrong amount, a serious illness or hospital stay kept you from handling the account, or a death in the family changed who managed your accounts.
- When and how you found out. Give the date you noticed and how.
- What you did about it. Give the date and amount of the corrective withdrawal and attach the statement.
- What changed. Mention any step that makes a repeat unlikely, such as automatic distributions.
No guarantee
The IRS decides each request on its facts. Forgetting about the deadline is the weakest explanation. If a large amount is involved, a tax professional or enrolled agent is worth the fee.
Missed an Inherited IRA Distribution? Relief for 2021 Through 2024
Many beneficiaries missed annual distributions because the rules were unclear before the final regulations came out in July 2024. The IRS responded with three notices, 2022-53, 2023-54 and 2024-35. In them, the IRS said it "will not assert that an excise tax is due" for specified missed distributions.
You are covered if all of the following are true.
- The IRA owner died in 2020, 2021, 2022 or 2023.
- The owner died on or after their required beginning date, so annual distributions were expected.
- You are a designated beneficiary who is not using the life-expectancy exception. That usually describes an adult child or grandchild under the 10-year rule.
- The missed distribution was for 2021, 2022, 2023 or 2024.
The notices do not require a Form 5329 or any other filing. The final regulations apply from 2025 and we found no blanket relief for missed distributions from 2025 on. Work out what you owe going forward with the inherited IRA RMD calculator.
How People Miss RMDs, and How to Avoid It Next Year
Taking it from the wrong account
IRA RMDs can be combined and taken from any IRA, but each 401(k) or 403(b) has to satisfy its own required amount. A withdrawal from the IRA does not cover the 401(k).
Using last year's number
The amount changes every year with the balance and your age. Your custodian's figure is the one to use. Our RMD calculator lets you check it.
Waiting until December
A transfer that starts on December 28 may not settle before the year ends. Taking it earlier, or setting up automatic monthly or quarterly payments, avoids the problem. See the RMD tax withholding calculator to set the tax withheld.
Missing a change of status
Turning 73 (or 75 for people born in 1960 or later), inheriting an account, or a custodian merger can each change who is responsible for the calculation. Check the first year of any change.
Not knowing it applies to your account
Roth IRAs have no RMDs during the owner's life. Inherited Roth IRAs do, because the beneficiary's rules apply.
Missed RMD Penalty FAQs
What is the penalty for missing an RMD?
An excise tax of 25% of the amount you should have withdrawn but did not. It drops to 10% if you take the missed amount and file a return reflecting the tax within the correction window. You can also ask the IRS to waive the tax if the shortfall was due to reasonable error and you are taking reasonable steps to fix it.
How is the missed RMD penalty calculated?
Subtract what you actually withdrew by the deadline from the required amount. The difference is the shortfall. Multiply it by 25%, or by 10% if you correct it in time. For example, a required amount of $20,000 with $12,500 withdrawn leaves a $7,500 shortfall, which means $1,875 at 25% or $750 at 10%.
How long do I have to correct a missed RMD?
The correction window ends on the earliest of three dates: the day the IRS mails a deficiency notice, the day the tax is assessed, or the last day of the second tax year that begins after the tax year in which the tax is imposed. For a missed 2025 distribution, the tax belongs to 2025, so the window generally runs through December 31, 2027.
How do I ask the IRS to waive the penalty?
File Form 5329 for the year of the shortfall. Complete the lines for the required amount and the amount actually distributed, then write "RC" and the amount you want waived in parentheses next to the excess accumulation line, and subtract it. Attach a statement explaining the reasonable error and the steps you took to fix it. The IRS decides whether to grant the waiver and notifies you of anything still owed.
Do I need to pay the penalty before the IRS approves the waiver?
The Form 5329 instructions say to pay any tax reported on line 55, which is the tax left after the amount you request to be waived. The IRS then reviews the request and tells you what, if anything, it still owes. If you are unsure how much to pay, a tax professional can help.
Which tax year does the penalty go on?
The tax year that includes the last day by which you had to take the distribution. For most years that is the same year as the RMD. If you delayed your first RMD to April 1, the deadline falls in the following year, so the tax belongs to that later year.
I missed my first RMD and waited until April 1. What happens?
You can delay the first RMD to April 1 of the next year, but you then owe two distributions that year. If the first one is still unpaid after April 1, the shortfall is taxed for the year of the April 1 deadline. For a first RMD for 2025, that is April 1, 2026, tax year 2026, and the correction window runs through December 31, 2028.
Did the IRS waive the penalty for inherited IRA beneficiaries?
For some. IRS Notices 2022-53, 2023-54 and 2024-35 say the IRS will not assert the excise tax for missed distributions for 2021 through 2024 for designated beneficiaries of owners who died in 2020 through 2023 on or after their required beginning date, if the beneficiary was not using the life-expectancy exception. We found no blanket relief for 2025 or later.
Can I take my missed RMD from a different account?
If the accounts are IRAs, you can generally total the required amounts and take the total from any of them. A 401(k) or 403(b) has to satisfy its own required amount from that plan, and the Form 5329 instructions say plans other than IRAs cannot aggregate.
Is the money I withdraw late taxed as well?
Yes. A withdrawal from a traditional IRA is ordinary income in the year you take it, whether it is on time or late. The excise tax is a separate extra tax on the shortfall. Plan the late withdrawal so it does not add to a high-income year if you can.
Official Sources and How We Calculate
The rates, the correction window and the waiver steps come from the Instructions for Form 5329, Part IX. The relief for beneficiaries comes from the three IRS notices.
| Source | What we used it for |
|---|---|
| Instructions for Form 5329 (2025) | 25% rate, 10% reduced rate, correction window, "RC" waiver request, line 55 payment |
| IRS Notice 2024-35 | Excise tax relief for specified missed 2024 beneficiary distributions |
| IRS Publication 590-B (2025) | Uniform Lifetime Table used by the RMD helper, first-year April 1 rule |
| Final regulations, T.D. 10001 | Annual distributions for beneficiaries and applicability from 2025 |
Results are estimates. The IRS decides waiver requests and any additional interest or penalties.
Educational Disclosure: This guide is for educational purposes only. Government rules, benefit levels, and tax limits change frequently. While we strive to present accurate information, it should not be taken as legal, tax, or financial advice. We encourage you to review official guidance on government portals (like IRS.gov or SSA.gov) and consult with a qualified professional before making final retirement or benefit elections.