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New Member
posted Feb 16, 2026 12:44:08 PM

rmd penalty for not taking enough out.

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1 Replies
Employee Tax Expert
Feb 16, 2026 1:46:02 PM

It depends. Normally the penalty is 25% of the shortfall (the difference between what you should have taken and what you actually took). 

 

If you correct the error within two years (or before the IRS sends you a bill), the penalty is 10%. However, if you can show reasonable cause like a serious illness, a death in the family, or a bank error, the IRS may waive the penalty.