What Happens If You Miss an RMD?
Failing to take the required minimum by the deadline can incur serious consequences. Some key points:
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Before recent changes, the penalty for missing (or under-withdrawing) an RMD could be 50% of the amount you should’ve withdrawn. That is, half of what you left out.
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As of SECURE 2.0, starting in 2023, the penalty has been reduced to 25% of the missed amount.
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There’s also a provision: if you correct a missed RMD within a “correction window,” the penalty can be further reduced to 10%.
If you’ve missed an RMD, you’ll typically file IRS Form 5329 with your tax return to report the shortfall and any penalty. Sometimes, you can request a waiver if the failure was due to a “reasonable error” and you take steps to avoid repeating it.
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