Missed Your RMD In 2025? Here's How to Minimize IRS Penalties in 2026.
The Motley Fool
by newsfeedback@fool.com (Maurie Backman)February 13, 2026
AI-Generated Deep Dive Summary
December is often a hectic time filled with holiday preparations and other tasks, which can lead people to overlook important financial obligations like taking their Required Minimum Distribution (RMD) for 2025. Missing an RMD can result in IRS penalties, but there are steps you can take in 2026 to minimize the consequences.
Failing to withdraw the required amount from your retirement accounts by December 31, 2025, triggers a penalty of 5% of the underpaid amount for each year it remains unpaid. This can significantly impact your financial health and retirement savings. However, the IRS offers options to rectify the situation. For instance, you may be able to self-correct by June 30, 2026, which allows you to withdraw the missed RMD without incurring additional penalties for that year.
Understanding why RMDs matter is crucial for those managing retirement funds. The IRS mandates these distributions to ensure retirees do not accumulate excessive tax-free growth on their savings. Missing an RMD can lead to severe financial consequences, including hefty penalties and interest charges. It’s essential to address the issue promptly to avoid further complications.
To minimize penalties, consider consulting a tax professional or financial
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Originally published on The Motley Fool on 2/13/2026