What Should You Do If You Miss an RMD Deadline?
Missing a deadline for a required retirement account withdrawal tends to trigger more anxiety than the situation usually warrants. The rule exists to be followed, but there’s also an established process for fixing it when it isn’t.
The short answer
If a required minimum distribution is missed, the general process is to withdraw the missed amount as soon as possible, then file the paperwork needed to request relief from the penalty that otherwise applies. Acting quickly and documenting the correction tends to matter more than the specific reason the deadline was missed in the first place.
The general correction steps
While every situation has its own details, the correction process tends to follow a similar shape:
- Withdraw the missed amount right away. The first step is generally to take out the full amount that should have been distributed, even though the deadline has already passed.
- Calculate the shortfall accurately. This means figuring out exactly what should have been withdrawn for the missed year, which may require pulling account statements from that specific period.
- File the relevant tax form. There’s a specific form used to report a missed distribution and to request that the penalty be reduced or waived.
- Attach a brief explanation. A short, honest statement describing what happened and the steps taken to fix it is typically part of the request for relief.
Why penalty relief is often available
The penalty for missing an RMD can sound steep on paper, but tax authorities have generally been willing to waive or reduce it when the account holder can show the shortfall was corrected promptly and the miss wasn’t willful. This isn’t a guarantee in any specific case, and outcomes depend on the circumstances and current guidance, but a documented, timely correction is generally viewed more favorably than one made only after being contacted about it.
Why deadlines get missed in the first place
Missed RMDs often trace back to a handful of common situations: a new custodian didn’t automatically calculate or flag the requirement, an account holder had multiple accounts and only remembered some of them, or a life event like a hospitalization disrupted a routine that had worked fine in prior years. Understanding how the required amount is calculated in the first place, including situations involving several old employer plans, can help identify where a gap might have occurred.
Reducing the odds of it happening again
Some people respond to a missed deadline by looking into whether a custodian offers automatic distribution setup for future years, so the withdrawal happens on a schedule rather than depending on a manual step each December. Others simply build a calendar reminder well ahead of the deadline, particularly in years when account balances or account numbers have changed. Neither approach eliminates the need to periodically confirm the calculated amount is accurate, since automation only helps if the underlying numbers are right.
The takeaway
A missed RMD deadline is a correctable mistake with an established process behind it, not a permanent black mark. The core steps are to withdraw the shortfall promptly, calculate it carefully, and file for relief with a clear explanation. From there, many people use the experience as a prompt to review how their accounts are tracked so the same gap doesn’t reappear in a future year.