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What Happens If I Miss My RMD Deadline?

Oct 3, 2025 | Blog, Required Minimum Distributions (RMDs)

The IRS requires account holders age 73 and older to take a Required Minimum Distribution (RMD) each year by December 31. But what if you miss the deadline? 

 

The IRS Penalty for Missing an RMD 

Missing an RMD is one of the costliest mistakes in retirement planning. The IRS can impose an excise tax penalty of 25% on the amount you should have withdrawn. 

Example: 

  • Your RMD for the year was $12,000 
  • You withdrew nothing by December 31 
  • The IRS penalty could be $3,000 (25% of $12,000) 

Fortunately, the IRS does allow a reduced penalty of 10% if the missed RMD is corrected within two years and reasonable cause is shown. But even then, the penalty is steep — and it’s far better to avoid the issue altogether. 

 

Can You “Catch Up” the Following Year? 

No. You cannot simply double your RMD the next year to make up for a missed one. The penalty applies in the year the RMD was missed. That’s why timely withdrawals are critical. 

 

How MidAtlantic Helps You Stay on Track 

At MidAtlantic IRA, we’re committed to helping you avoid these costly mistakes. Here’s how we support you: 

  • Annual RMD calculation: We calculate your required withdrawal amount each year based on your account balance and age. 
  • Client reminders: We send out clear reminders well before the IRS deadline. 
  • Internal cutoff date (November 15): We strongly encourage clients to request their RMD by this date to ensure processing before year-end and to avoid late-processing fees. 
  • Dedicated support: Our team is available to answer questions and walk you through the process. 

With the right planning, missing an RMD deadline doesn’t have to be a concern. 

 

What To Do If You Already Missed One 

If you realize you’ve missed an RMD: 

  1. Take the distribution as soon as possible. 
  2. Work with your tax advisor to file IRS Form 5329 (Additional Taxes on Qualified Plans). 
  3. Request a waiver or penalty reduction if eligible. 

 

Additional Resources 

 

Bottom line: Missing your RMD deadline can be expensive — but with MidAtlantic’s reminders, calculations, and support, you’ll have everything you need to stay compliant and penalty-free.