What happens if you miss a required minimum distribution
The United States does not cap how much you may take out of a retirement account in a year the way Korea limits annual pension withdrawals. The pressure runs the other way: once you reach the required beginning age you must take a required minimum distribution each year, and taking too little triggers an excise tax under 26 U.S.C. 4974. SECURE 2.0 cut that penalty from 50% to 25% of the shortfall, and to 10% where the missed amount is withdrawn and reported inside the correction window.
This calculator divides your prior year-end balance by the life expectancy factor from the IRS table to get the required distribution, compares it with what you actually took, and applies the appropriate penalty rate to the difference. It also estimates ordinary income tax on the amount you withdrew, so you can see the full cost of the year in one place.
Figures are on a 2026 basis. Life expectancy factors come from the tables in IRS Publication 590-B and depend on which table applies to you, which is why the factor is entered rather than assumed. Roth IRAs have no lifetime RMD for the original owner, inherited accounts follow separate rules, and the IRS can waive the excise tax for reasonable error if you request it on Form 5329. This is an estimate, not tax advice, so confirm the current rules and your own factor with a tax professional.
Frequently asked questions
SECURE 2.0 reduces the excise tax when the missed amount is withdrawn and a return is filed within a correction window that generally ends near the end of the second year after the miss. The reduced rate is not automatic, so check the current Form 5329 instructions for the exact deadline.
Possibly. The IRS can waive the excise tax where the shortfall was due to reasonable error and you are taking steps to fix it. You request the waiver on Form 5329 with an explanation, after taking the missed distribution.
Most account owners use the Uniform Lifetime Table in IRS Publication 590-B. A different table applies if your sole beneficiary is a spouse more than ten years younger, and inherited accounts use the Single Life Table, so confirm which one fits your situation.