What Happens if I Fail to Take My RMD?

If you fail to take your RMD or if you take less than the minimum amount, you may be subject to a 25% excise tax on the amount not distributed. For example, if your RMD is $3,000 and you only take out $1,500, you may be required to pay excise tax in the amount of $375 — or 25% of the amount that was not distributed.

You should contact your tax professional immediately to determine the best plan of action for your circumstances. You will want to ensure that you take the correct amount as soon as possible and take appropriate actions when filing your tax returns.