The example in the calculator
Born in 1948, you reach 78 in 2026. Your IRA was worth $300,000 on December 31, 2025. The divisor at 78 is 22.0, so the 2026 RMD is $13,636.36. You have taken $5,000 so far, which leaves $8,636.36 still to withdraw by December 31, 2026.
If that shortfall is still there after the deadline, here is what it could cost:
| Situation | Excise tax on $8,636.36 |
|---|---|
| You take it before December 31, 2026 | $0 — nothing missed |
| Missed, corrected within the correction window | $863.64 (10%) |
| Missed and not corrected in time | $2,159.09 (25%) |
| Missed, IRS grants a waiver (reasonable error) | $0 |
Before 2023 the penalty was 50%. SECURE 2.0 cut it to 25%, and to 10% when corrected in time.
How to fix a missed RMD
- Take the missed amount as soon as you notice. Ask your custodian to pay out the shortfall now. It is taxed in the year you actually receive it.
- File Form 5329 for the year of the shortfall. Part IX of the form is where the missed RMD goes.
- Ask for a waiver if it was an honest mistake. If the shortfall came from a reasonable error — illness, a custodian mix-up, a misunderstanding — and you are fixing it, you can ask the IRS to waive the tax. Attach a short, plain letter explaining what happened and what you did to put it right.
- Keep records. Save the custodian’s confirmation of the catch-up withdrawal.
What is the correction window?
Generally it runs until the end of the second year after the year you missed — so for a 2026 shortfall, until December 31, 2028 — or earlier if the IRS sends you a notice of deficiency or assesses the tax first. Inside that window the rate is 10%; after it, 25%.
Small habits that prevent it next year
- Ask your custodian to set up an automatic RMD payment each year.
- If you have several IRAs, make one list with each RMD and the account you will take the total from.
- Remember each 401(k) or 457(b) needs its own RMD from that plan.
- Inherited an IRA? Different rules apply — check them separately.
Do not panic about the letter
If the IRS writes to you about a missed RMD, reply calmly and quickly. Explain what happened, show that you have now taken the missing amount, and include your Form 5329 if you have not filed it yet. Many people who correct the mistake promptly and ask for a waiver end up paying nothing. If you work with a tax preparer, give them the custodian’s confirmation and they can handle the paperwork for you.
FAQ
How much is the penalty for a missed RMD?
25% of the amount not taken. In this example the shortfall is $8,636.36, so the tax would be $2,159.09.
Can the penalty be reduced to 10%?
Yes. If you take the missed amount within the correction window and file Form 5329, it drops to 10% — $863.64 in this example.
What is the RMD on $300,000 at age 78?
$300,000 ÷ 22.0 = $13,636.36 for 2026.
Sources: Treas. Reg. §1.401(a)(9)-9 as amended by T.D. 9930 (Federal Register, 12 Nov 2020) — govinfo.gov/content/pkg/FR-2020-11-12/html/2020-24723.htm; IRS Publication 590-B (2025 returns) — irs.gov/publications/p590b; IRS news release IR-2024-309 (25%/10% excise tax, April 1 rule); SECURE 2.0 Act §§107, 302, 325. Joint-table excerpt cross-checked against two published copies of Table II. Checked 5 November 2026.