If you turned 73 in 2025 and planned to take your first required minimum distribution (RMD) by April 1, 2026 -- but didn't -- you're not alone. And you have options. The Internal Revenue Service (IRS) assesses penalties for missed RMDs, but the system is more forgiving than it used to be, especially for first-time filers who act quickly. Here's what to do right now.

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Step 1: Take the missed distribution as soon as possible

Call your plan custodian or log into your account and initiate the RMD withdrawal today. If you're not sure how much to take, your custodian can calculate it based on your Dec. 31, 2025, account balance and the IRS Uniform Lifetime Table.

Step 2: Understand the penalty -- and how to reduce it

Thanks to the SECURE 2.0 Act, the penalty for a missed RMD dropped from 50% to 25% of the shortfall. That's still significant, but if you correct the mistake within two years, the penalty drops to just 10%. And if you file the right paperwork, you may be able to eliminate it entirely.

Step 3: File Form 5329 and request a waiver

The IRS has a well-established process for waiving RMD penalties when the miss was due to "reasonable error," and you've taken steps to correct it. Here's how:

1. Take the missed distribution (Step 1).
2. Complete IRS Form 5329 for the tax year you missed the RMD.
3. Attach a written explanation describing what happened (illness, confusion about the first-year rule, custodian error) and the corrective action you took.
4. Check the waiver box on Form 5329 and enter the amount for which you're requesting a waiver.

The IRS grants these waivers fairly liberally when the error is clearly honest and you've taken prompt corrective action. It's not automatic, but it's far from a long shot.

Step 4: Don't forget your second RMD

Here's where the first-year deadline trips up a lot of retirees: If you delayed your first RMD to April 2026, you still owe your second RMD by Dec. 31, 2026. That means two taxable distributions in the same calendar year, which could push you into a higher tax bracket and potentially increase your Medicare premiums. Work with your custodian or tax advisor to plan the December withdrawal with the full tax picture in mind.

The bottom line

A missed first-year RMD can be stressful, but it's fixable. Take the distribution immediately, file Form 5329 with a clear explanation, and get your Dec. 31 RMD scheduled before the year gets away from you. The IRS would rather see you correct the mistake than ignore it.