If you missed a required minimum distribution (RMD), first confirm the shortfall with your IRA custodian or retirement plan administrator, then take the missed amount as soon as practicable. You may owe an excise tax, but the tax can be reduced in qualifying cases and the IRS may waive some or all of it when the failure resulted from reasonable error and you are taking reasonable steps to fix it. The right amount, deadline, and filing depend on the account, tax year, and whether you are an account owner, beneficiary, or plan participant.
What happens if you miss an RMD deadline?
The potential federal excise tax is generally 25% of the shortfall: the difference between the amount that was required to be distributed and the amount actually distributed for the year. Under specified correction requirements, the rate may be reduced to 10%. The IRS says the reduced rate is available when the missed RMD is corrected within two years; eligibility depends on the facts and the applicable tax-year rules. See the 2025 Instructions for Form 5329 and the IRS RMD FAQs, updated December 10, 2024.
A missed deadline does not by itself establish the amount of tax due. The shortfall calculation depends on the RMD amount for the specific account and year, distributions already credited to that year, and any waiver the IRS grants. RMD rules and deadlines vary by account and circumstances; the IRS provides general information on required minimum distributions.
What to do after discovering a missed RMD
- Confirm the shortfall. Ask the IRA custodian or plan administrator to verify the deadline, required amount, and distributions credited to the relevant year. Retain account statements and correspondence.
- Take the missed distribution promptly. Correct the shortfall as soon as practicable and keep proof of the distribution. Taking corrective steps matters both to the IRS waiver standard and potentially to the reduced tax rate.
- Determine how to report the shortfall. Use Form 5329 and the instructions for the year the RMD was due. The 2025 instructions calculate the additional tax based on the excess accumulation and explain when the 10% rate applies. For an earlier year, use that year’s form and instructions rather than assuming the current year’s filing details apply.
- Decide whether to request a waiver. If reasonable error caused the shortfall and you are taking reasonable steps to remedy it, attach a written explanation to Form 5329 requesting that the IRS waive some or all of the tax. A waiver request is reviewed by the IRS; it is not automatic.
- File by the applicable deadline. The 2025 Form 5329 instructions say to file with your federal return by its due date, including extensions. If you are not required to file a return, those instructions allow Form 5329 to be filed by itself at the time and place the return would otherwise be due; a standalone filing cannot be made electronically under those instructions. Check the instructions for the tax year involved.
How to request an IRS waiver on Form 5329
The IRS may waive part or all of the tax if you can show that the shortfall resulted from reasonable error and that you are taking reasonable steps to remedy it. On the Form 5329 for the year the RMD was due, follow that year’s instructions for the applicable shortfall line. The 2025 instructions direct filers to enter “RC” and the amount requested for waiver next to that line, then calculate any remaining shortfall and tax.
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In the attached statement, explain the circumstances that caused the missed or incomplete distribution and describe the steps you have taken or are taking to correct it. Include relevant dates and supporting facts. The IRS evaluates the request and decides whether to grant relief; do not treat the requested waiver as approved until the IRS says so. Because a waiver request involves both a tax calculation and a fact-specific explanation, a qualified tax professional can help prepare the filing if you need assistance.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Individual account holder or participant versus plan sponsor
An individual IRA owner or retirement plan participant generally uses Form 5329 to report the shortfall and request a waiver. An employer or plan sponsor has separate correction options under the IRS Employee Plans Compliance Resolution System (EPCRS). Depending on the circumstances, a plan failure may be eligible for the Self-Correction Program, while the Voluntary Correction Program can be used to request a waiver of a participant’s excise tax. The IRS describes these options in its guidance on correcting RMD failures. If an employer plan is involved, contact the plan administrator; sponsor eligibility and the proper correction depend on the plan’s facts.
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