# Miss RMD Penalty Waiver Process

> IRS waives 25% penalty for missed RMDs with two-paragraph letter.
- Title: Miss RMD Penalty Waiver Process · 24/7 Wall St. | Shortify
- Summary: IRS waives 25% penalty for missed RMDs with two-paragraph letter. Retirees can avoid 25% IRS penalty for missed required minimum distributions by filing Form…
- Keywords: irs, rmd, form 5329, required minimum distribution, tax penalty, waiver, retirees, ira, Miss, Penalty, Process, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/07/miss-an-rmd-and-the-irs-penalty-is-25-file-form-5329-with-a-two-paragraph-letter-and-the-agency-has-waived-it-for-nearly-everyone-who-has-asked
- Author: Vilma Rios
- Published: 2026-10-08T00:53:56+00:00
- Read time: 1 min
- Topics: irs, rmd, form 5329, required minimum distribution, tax penalty, waiver, retirees, ira
## RMD Missed Penalty
The IRS charges 25% excise tax on missed required minimum distributions from IRAs.

> The tax code charges an excise tax of 25% of the amount owed.
## Historical Penalty Rate
Section 4974 of the Internal Revenue Code charged 50% of the shortfall for decades before the SECURE 2.0 Act cut it to 25%.

> Section 4974 Charged 50% for Decades, and SECURE 2.0 Cut It to 25%
## Corrective Window
The IRS allows up to two years from the missed RMD to correct the error and avoid the penalty.

> That window generally runs to the end of the second year after the missed rmd
## Waiver Process
File Form 5329 with a two-paragraph letter explaining the error and a corrective withdrawal.

> Attach a two-paragraph letter. Paragraph one explains what went wrong.
## Why Waivers Work
Tax specialists report nearly all waiver requests are approved when the person withdraws the money promptly and files Form 5329.

> Ed Slott told kiplinger in 2019 that he had never seen a penalty not waived when the person withdrew the money promptly and filed form 5329.
## Common Mistakes
Waiting too long, skipping the form, or missing the double-up can sink a waiver request or cost more later.

> Three mistakes that can sink a waiver request or cost more later
## 2026 RMD Deadline
Retirees with 2026 RMDs have less than three months to set up automatic withdrawals to avoid writing letters.

> If you have an rmd due this year, december 31, 2026, is less than three months away.
## What Happens Next
The IRS has waived penalties for nearly everyone who has asked for relief through the two-step process.

> The agency has waived it for nearly everyone who has asked
## Key takeaway

Retirees can avoid 25% IRS penalty for missed required minimum distributions by filing Form 5329 with a two-paragraph letter explaining the error.