Missed an RMD? The 25% (or 10%) Excise and Form 5329

Since 2023 the excise tax on an RMD you didn't take is 25% of the shortfall, and 10% if you take it during the correction window, generally by the end of the second year after the year it was due (IRC §4974 as amended by SECURE 2.0 §302). You report it on Form 5329.

Waiver

The IRS can waive the tax if the shortfall was due to reasonable error and you're taking steps to fix it. Take the missed amount, then attach a short explanation to Form 5329 (see the form's instructions).

Avoid it

List every account, including old 401(k)s and inherited IRAs, and check what's still due before December 31. That is what Rmdtally's worksheet is for.

Last reviewed 2026-10-29. General information, not tax advice. Your custodian's figures and a tax professional come first.