Excess accumulations fall into two categories: those that are corrected within the correction window and those that are not corrected within the correction window. Unless the penalty is waived for good reason, those corrected within the correction window are subject to a 10% penalty while those not corrected within the correction window are subject to a 25% penalty. Part IX lines 'a' relate to those corrected within the correction window and lines 'b' relate to those not corrected within the correction window.
The correction window runs to the end of the second year after the year of the missed distribution except in cases where the IRS issues a deficiency notice or assessed the penalty before then. For a missed 2024 RMD, the correction window would generally run to the end of 2026.
