Missed Your RMD In 2025? Here's How to Minimize IRS Penalties in 2026.

The Motley FoolFeb 13, 2026 6:42 PM

Key Points

Failing to take an RMD could trigger a 25% penalty.
If you correct the mistake quickly, you can whittle that penalty down.
In some cases, the IRS might agree to waive an RMD penalty altogether.
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December tends to be a busy month for a lot of people. And if you were all wrapped up in holiday preparation (and, depending on where you live, snow cleanup), certain financial tasks may have fallen by the wayside.

If one of those tasks was taking your required minimum distribution (RMD) for 2025, though, then you may be in a bit of a pickle now.

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RMDs apply to traditional retirement plans like IRAs and 401(k). And if you don't take an RMD on schedule, it could cost you to the tune of 25% of whatever sum you didn't withdraw when you were supposed to.

If you missed your RMD in 2025, it's not a given that you'll be stuck losing 25% of that sum, though. Here's what to do.

Act quickly to fix the situation

If you missed your recent RMD, you're not alone. Almost 7% of Vanguard IRA holders missed their RMDs in 2024, leading an average penalty of more than $1,100, the company reports.

But since getting slapped with RMD penalties is akin to throwing away money, it's best to avoid losing 25% of the sum you didn't withdraw. And an easy way to get that penalty reduced is to take your missed RMD as soon as possible. If you correct a missed RMD within two years, you can generally get the IRS to hit you with a 10% penalty instead of 25%.

In fact, if you can prove to the IRS that you missed your RMD due to a reasonable error, you may be able to get your penalty waived completely. It could be a good idea to consult a financial advisor or tax professional for guidance if you missed a substantial RMD and are looking to minimize the pain afterward.

Don't make the same mistake again

So you missed your RMD in 2025. It happens. The key, now, is to avoid a repeat in 2026.

While you have until Dec. 31 to take your RMD each year, you don't have to wait that long. And the sooner you take that mandatory withdrawal, the sooner you get to check one pressing financial task off your list for the year.

If you'd rather keep your money in your IRA or 401(k) for longer so it continues to enjoy extra months of tax-advantaged growth, set a calendar reminder now to take that withdrawal in December. Or, see if your retirement plan allows you to schedule RMDs ahead of time. That way, you won't have to worry about missing the next deadline and losing some of your hard-earned savings to a penalty.

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