What If I Miss the RMD Deadline? Your Action Plan

There are two key deadlines to know:

• **Annual deadline:** December 31 each year
• **First RMD exception:** April 1 of the year AFTER you turn 73
• **Warning:** If you delay first RMD to April 1, you must take TWO RMDs that year
• **No extensions:** Unlike tax returns, there's no way to extend an RMD deadline

If you've missed your RMD deadline, take these steps immediately:

• **Step 1:** Contact your custodian TODAY and request the distribution
• **Step 2:** Calculate exactly how much you should have taken
• **Step 3:** Take the FULL missed amount - don't split it up
• **Step 4:** Document the date you discovered the error
• **Step 5:** Gather any documentation for "reasonable cause"

The IRS can waive the 25% penalty if you have "reasonable cause" and take corrective action.

• Attach a letter to Form 5329 explaining why you missed the deadline
• Be specific: dates, circumstances, what you've done to fix it
• Good reasons: illness, custodian error, death in family, bad advice, first-time mistake
• Don't pay the penalty with the form - wait for IRS response
• Most first-time, promptly-corrected errors are waived

IRS Form 5329 reports the missed RMD and any penalty:

• File with your annual tax return (or separately if return already filed)
• Part IX is for RMD shortfalls
• Line 52: Enter the required distribution amount
• Line 53: Enter what you actually took
• Line 54: Calculate the shortfall
• If requesting waiver: Enter "RC" and $0 on penalty line, attach explanation letter

Set yourself up for success:

• **Automatic distributions:** Set up monthly or quarterly auto-withdrawals
• **Multiple reminders:** Calendar alerts in October, November, and December
• **Simplify:** Consolidate IRAs so you only track one RMD
• **Roth conversion:** Roth IRAs have no RMDs - problem solved
• **Professional help:** Financial advisors track this for clients