What is the penalty for missing an RMD?

The penalty for a missed RMD is 25% of the amount you should have withdrawn but didn't. However, SECURE 2.0 Act reduced this from the previous 50% penalty. If you correct the mistake within 2 years (take the missed RMD and file Form 5329), the penalty drops to just 10%. The IRS may also waive the penalty entirely if you can show reasonable cause.

At what age do RMDs start?

For people born in 1960 or later, RMDs begin at age 73 (this will increase to 75 starting in 2033 under SECURE 2.0). Your first RMD must be taken by April 1 of the year after you turn 73. Subsequent RMDs are due by December 31 of each year. Roth IRAs do NOT have RMDs for the original owner — only inherited Roth IRAs require distributions.

Can the IRS waive the RMD penalty?

Yes — the IRS frequently waives the penalty for reasonable cause. Common accepted reasons include: you didn't know about the requirement, your financial advisor made an error, you had a serious illness, or you had a death in the family. To request a waiver, file Form 5329, take the missed RMD as soon as possible, and attach a letter explaining the circumstances.

I Forgot to Take My RMD — What Do I Owe?

If you forgot to take your required minimum distribution, take it immediately and file to correct the error. The penalty is 25%, but drops to 10% if you fix it within 2 years — and the IRS often waives it entirely for first-time mistakes with reasonable cause.

What to Do Right Now

Step	Action	Why
1	Take the missed RMD immediately	Withdraw the amount you should have taken
2	Calculate the correct RMD amount	Account balance ÷ life expectancy factor
3	File IRS Form 5329	Report the missed RMD and request penalty reduction
4	Attach an explanation letter	Explain why you missed it (reasonable cause)
5	Take the current year’s RMD on time	Don’t miss two in a row

RMD Penalty Structure

Situation	Penalty Rate
Missed RMD (standard penalty)	25% of the shortfall
Corrected within 2 years	10% of the shortfall
Reasonable cause accepted by IRS	0% (waived)
Previous penalty (before SECURE 2.0)	50%

RMD Starting Ages

Birth Year	RMD Starts At Age	First RMD Deadline
1950 or earlier	72 (already started)	Already passed
1951-1959	73	April 1 after turning 73
1960 or later	75 (starting 2033)	April 1 after turning 75

Sample RMD Amounts

Account Balance at Year-End	Age	Life Expectancy Factor	RMD Amount	25% Penalty If Missed
$200,000	73	26.5	$7,547	$1,887
$500,000	73	26.5	$18,868	$4,717
$500,000	78	22.0	$22,727	$5,682
$1,000,000	73	26.5	$37,736	$9,434
$1,000,000	80	20.2	$49,505	$12,376

RMD = Prior year-end account balance ÷ IRS life expectancy factor (Uniform Lifetime Table)

Accounts That Require RMDs

Account Type	RMDs Required?	Notes
Traditional 401(k)	✅ Yes	Starting at 73 (or 75 if born 1960+)
Traditional IRA	✅ Yes	Starting at 73 (or 75 if born 1960+)
SEP IRA	✅ Yes	Same as Traditional IRA
SIMPLE IRA	✅ Yes	Same as Traditional IRA
403(b)	✅ Yes	Same rules as 401(k)
Roth IRA (original owner)	❌ No	No RMDs during your lifetime
Roth 401(k)	❌ No (starting 2024)	SECURE 2.0 eliminated Roth 401(k) RMDs
Inherited IRA (Traditional or Roth)	✅ Yes	10-year rule or life expectancy, depending on beneficiary

How to Request a Penalty Waiver

Element	What to Include
Form 5329	File for the year you missed the RMD
Explanation letter	Attach to Form 5329
Reasonable cause examples	Didn’t know about requirement; illness; advisor error; death in family
Proof you corrected it	Show that you took the missed RMD
Request waiver	State: “I request the penalty be waived due to reasonable cause”

The Bottom Line

Take the missed RMD immediately — don’t wait. File Form 5329 with a reasonable cause explanation to request a penalty waiver. The IRS is generally lenient on first-time RMD mistakes, especially when you self-correct promptly. The penalty dropped from 50% to 25% (and 10% if corrected quickly) under SECURE 2.0, and full waivers are common for genuine mistakes.