What's the penalty for a missed RMD in 2026?

Under IRC §4974, the excise tax is 25% of the shortfall, reduced from 50% by SECURE 2.0 §302. It drops to 10% if corrected within two years. The IRS will often waive it entirely if you provide reasonable cause and take the missed distribution.

Do I have to pay the excise before the IRS approves the waiver?

No. On Form 5329 Part IX, write 'RC' in the margin and enter the waived amount in parentheses. The IRS approves the waiver before any payment is required. Pre-paying is the most common procedural mistake.

Form 5329 · IRC §4974

Missed RMD — Form 5329 correction & waiver

If you miss an RMD or take less than the full amount, the shortfall is subject to a 25% excise tax under IRC §4974 (reduced from 50% by SECURE 2.0). The penalty drops to 10% if you correct within the 2-year window. You can request a waiver for reasonable cause via Form 5329 Part IX with a written statement.

The math

Excise = 25% × (RMD required − RMD taken)

If corrected within 2 years: 10% × shortfall

Example: $20,000 RMD required, $0 taken. Excise = $5,000 (or $2,000 if corrected within 2 years). Waiver request can reduce to $0.

The four-step correction

Take the missed distribution immediately. Withdraw the shortfall now. The IRS will not waive the excise without evidence of correction.
File Form 5329 for each year missed. Part IX. Use a separate form for each tax year.
Attach a reasonable-cause statement. Plain-English explanation: medical issue, custodian error, miscalculation, hospitalization. Reference Pub 590-B.
Write "RC" on Form 5329 line 54. Enter the waived amount in parentheses. Do not pre-pay the tax — the IRS approves first.

Reasonable-cause patterns the IRS commonly accepts

Custodian error (account moved between firms, system miscoded, lost rollover instruction)
Recent illness, hospitalization, or death of spouse
Missed paperwork after divorce or beneficiary change
Genuine confusion about RBD age following SECURE 2.0 transition (most relevant for 1951-1959 cohort)

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Last verified: May 6, 2026 · Pub 590-B post-2022 (TD 9930) divisors.