What this line means
The difference between the required minimum distribution you were supposed to take and the amount you actually withdrew. Starting at age 73, the IRS requires you to withdraw a minimum amount annually from traditional IRAs and most employer retirement plans. If you withdrew less than required, the shortfall is subject to a penalty tax.
Does this apply to you?
- You are age 73 or older and did not take the full required minimum distribution from your traditional IRA
- You inherited a retirement account and missed the required distribution under the beneficiary rules
- You have a 401(k) or other employer plan with an RMD requirement and withdrew less than required
- You turned 73 during the year and did not realize you needed to start taking distributions
Easy to overlook
The first RMD can be delayed to April 1 of the following year If you turned 73 in 2025, your first RMD is for 2025 but can be delayed until April 1, 2026. However, delaying means you must take two RMDs in 2026 — the delayed 2025 RMD plus the regular 2026 RMD. The double distribution can push you into a higher tax bracket. 1 IRS Publication 590-B — Distributions from IRAs
RMDs must be calculated separately for each traditional IRA but can be taken from any one If you have three traditional IRAs, calculate the RMD for each based on its year-end balance and the IRS Uniform Lifetime Table. You can then withdraw the total required amount from any single IRA or combination of IRAs. But the calculation must be done for each account individually. Using only one account’s balance understates the total RMD. 2 IRS Form 5329 instructions — Part IX
Watch out for this
Assuming Roth IRAs have required minimum distributions during the owner’s lifetime. Roth IRAs do not require distributions while the original owner is alive. Only inherited Roth IRAs have RMD requirements for beneficiaries. If you have both traditional and Roth IRAs, the RMD applies only to the traditional accounts.
Footnotes
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IRS Publication 590-B, Distributions from Individual Retirement Arrangements, Required Minimum Distributions. https://www.irs.gov/pub/irs-pdf/p590b.pdf ↩
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IRS Form 5329 Instructions, Part IX. https://www.irs.gov/instructions/i5329 ↩