The RMD Deadline Is December 31: What Happens If You Miss It

If you turned 73 this year, the IRS gives you until December 31, 2026 to take your required minimum distribution, or RMD, from most retirement accounts. If you turned 73 in an earlier year and have already started taking RMDs, that same December 31 deadline applies to you every year going forward. Missing it triggers a penalty that is easy to avoid once you know it is coming.

An RMD is the minimum amount the IRS requires you to withdraw each year once you reach age 73, from accounts like traditional IRAs, 401(k)s, and 403(b)s. Roth IRAs are the exception. The original owner of a Roth IRA is never required to take distributions during their lifetime. The amount you owe is calculated by dividing your account balance as of December 31 of the prior year by a life expectancy factor the IRS publishes each year.

There is one exception worth knowing. If 2026 is the first year you turn 73, you are allowed to delay that first RMD until April 1, 2027. It sounds like a break, but it usually is not one. Waiting means you will owe two RMDs in the same year, the delayed one and the regular 2027 one, and stacking both into one year's income can push you into a higher tax bracket. For most people, taking the first RMD by December 31, 2026 is the simpler and cheaper choice.

Here is what happens if you miss the deadline. The IRS charges an excise tax on the amount you should have withdrawn but did not. That penalty starts at 25 percent of the shortfall. Under the SECURE 2.0 rules, if you correct the mistake within two years, the penalty drops to 10 percent instead of 25. It is real money either way, and it is entirely avoidable with a few minutes of planning before the end of the year.

Before December 31, confirm two things: which of your accounts actually require an RMD this year, and whether you have already withdrawn enough from each one. Account rules vary, and if you hold several retirement accounts across different institutions, it is easy to assume one covers another when it does not.

Upscale Tax Professionals works with clients in all 50 states, so you can get help before the deadline wherever you live. Our Personal Tax Advisory service reviews your accounts and helps you confirm your RMD amount before the deadline. Request a Private Consultation before December 31 to review this year's distribution with us.

This article is for general educational purposes only and is not tax, legal, or financial advice. Tax rules change and every situation is different. Information is current as of October 2, 2026. Upscale Tax Professionals is not a law firm.