“Skipped Your 2025 RMD? Here’s Why the 25% Penalty Matters” — Age 73 Rules, Deadlines, and Fixes (Updated Jan 2026)

“Skipped Your 2025 RMD? Here’s Why the 25% Penalty Matters” — Age 73 Rules, Deadlines, and Fixes (Updated Jan 2026)

Required Minimum Distributions (RMDs) are not optional reminders you can ignore.
In real EA practice, one of the most common year-end mistakes is realizing too late that a required withdrawal was missed — triggering a potential 25% penalty on the undistributed amount.
This guide explains, using January 2026 rules, who must take a 2025 RMD, the exact deadlines, how penalty relief works (25% → 10%), and what to do if you already missed it.

1️⃣ What Is an RMD — and Why Year-End Errors Are So Common

RMD rules exist to ensure that tax-deferred retirement accounts eventually become taxable.
They apply to Traditional IRAs, SEP and SIMPLE IRAs, and most employer plans such as 401(k)s and 403(b)s.
The problem is not the rule itself — it’s that missing the deadline triggers an excise-type penalty, even when the oversight was unintentional.

2️⃣ Who Must Take a 2025 RMD — Age 73 vs 75 Explained

Under SECURE Act 2.0, the RMD start age depends on your year of birth.
Many online sources still oversimplify this rule, which leads to costly mistakes.

3️⃣ RMD Coverage by Account Type (Quick Table)

In short, most traditional retirement accounts are subject to RMDs, while Roth accounts are largely exempt during the owner’s lifetime.

6️⃣ Top 7 RMD Mistakes Seen in EA Practice

8️⃣ Missed It Already? — Form 5329 & Penalty Waiver Process

If an RMD was missed, simply withdrawing more next year is not enough.
The typical correction process looks like this:

EA Takeaway
RMD problems are rarely about the dollar amount — they’re about timing and account-specific rules.
Missing regulatory updates, especially for Roth 401(k)s, can lead to unnecessary withdrawals and penalties.

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