One Missed IRA Deadline, One Avoidable Penalty
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You turned 73, and somewhere between the RMD notice from your custodian and your year-end to-do list, the deadline slipped by. Your custodian sent the notice — they’re not on the hook for what happens next. You are.
Miss the deadline, and the penalty isn’t a slap on the wrist. It scales directly with the shortfall, and waiting even longer to fix it costs you more.
If you’re supposed to take a $50,000 RMD and only take $30,000, the IRS can impose a $5,000 penalty on the $20,000 shortfall — though that penalty drops to 10 percent if you correct it within the window, and the IRS will often waive it entirely for a first-time, reasonable error.