Required Minimum Distributions-Missed

What Hap­pens If You Miss Your RMD Dead­line
If the RMD amount is not dis­trib­uted by the dead­line, then the IRS assesses a 50% excise tax on the amount not with­drawn. This is referred to as an excess-accumulation penalty. If you with­draw only a por­tion of the RMD amount, the penalty is assessed on the bal­ance. For exam­ple, say your cal­cu­lated RMD amount for 2004 is $10,000 and you with­drew $5,000. You will be assessed a 50% excise tax on $5,000.

All Is Not Lost… Maybe
Should you find your­self in the unfor­tu­nate predica­ment of hav­ing to pay this excise tax due to an error, you may request a waiver from the IRS. Gen­er­ally, to con­sider the waiver, the IRS requires that you have taken or are tak­ing steps, such as tak­ing the RMD amount as soon as pos­si­ble, to cor­rect the error. You must pay the excise tax and then sub­mit a let­ter of expla­na­tion ask­ing for a waiver with your income tax return. The excise tax is reported on IRS Form 5329, which may be obtained at If your request is approved, the IRS will return the excise tax amount to you.