3 Common RMD Mistakes to Avoid

With 2026 more than half over, it's time to start thinking about your required minimum distributions (RMDs) if you're 73 or older and haven't taken them yet. There's no rush to complete them, but you do want to create a plan and brush up on the rules.

RMDs can be a little tricky, especially if you're new to them, and failing to take them as required can result in a 25% tax penalty. But you should be able to avoid that if you're careful not to make the following three mistakes.

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1. Forgetting to take RMDs from all necessary retirement accounts

The IRS requires you to take RMDs from most tax-deferred retirement accounts beginning in the year you turn 73. You don't have to take these RMDs from Roth accounts, though, and you can also skip withdrawals from your current 401(k) if you're still working and own less than 5% of the company you work for. In the latter case, you must still take withdrawals from any old 401(k)s and traditional IRAs you have.

Start by making a list of all the retirement accounts you must take RMDs from, and then look up what your balance was as of Dec. 31, 2025. Check with your plan administrator if you're not sure how to figure that out. Then, divide these amounts by the applicable distribution period for your age from the IRS's Uniform Lifetime Table. The result is your RMD.

2. Failing to take RMDs from each individual 401(k)

IRAs have a special rule that lets you take all your IRA RMDs from a single account, if you prefer. You must calculate IRA RMDs individually, but then you can withdraw that amount from any combination of IRAs you'd like.

For example, if you have one IRA with a $5,000 RMD and another with a $10,000 RMD, you can withdraw $15,000 from one, $7,500 from each, or whatever combination you want. As long as it equals at least $15,000, your RMDs for both IRAs will be satisfied.

That's not how it works for 401(k)s, though. You must calculate your RMDs for each 401(k) individually and then withdraw at least that amount from that specific 401(k). Failing to do so could result in a 25% penalty for not taking your RMD from one of your 401(k)s, even if you withdrew more than you needed to from another 401(k). Consider rolling old accounts into a newer 401(k) or an IRA to avoid this in the future.

3. Missing the RMD deadline

You have until Dec. 31, 2026, to take your RMDs if you'll be 74 or older by the end of the year. Those who have or will turn 73 in 2026 have until April 1, 2027, to take their first RMDs. However, if you wait until next year to take yours, you'll have to take two years of RMDs in 2027.

Don't wait until a few days before the deadline to try to complete your RMDs. If something goes wrong or the transfer is delayed, you could incur the 25% penalty for failing to take your RMDs on time.

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