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5 Required Minimum Distribution Mistakes Most Retirees Don’t Realize Are Costly

By Curtis Jones · October 15, 2026

Once you hit the age when the IRS expects you to start taking money out of traditional retirement accounts, the calendar matters as much as the balance. Miss the rules and you can owe a steep tax on top of the income tax you already expected.

The IRS says you generally must begin required minimum distributions from IRAs and most workplace plans at age 73. Roth IRAs do not require withdrawals while the original owner is alive. The amount each year is based on the prior year-end balance divided by a life-expectancy factor from IRS tables.

Here are five mistakes that catch people after the fact.

Waiting until April for the first one, then getting hit with two in one year. Your first IRA RMD can wait until April 1 of the year after you turn 73. The IRS is clear that you still owe the next year’s RMD by December 31 of that same calendar year. Take both in one tax year and you can jump into a higher bracket, pay more Medicare IRMAA later, or both. Taking the first RMD in the year you turn 73 keeps the income in separate years.

Assuming a still-working rule covers every account. For many 401(k) and similar plans, the IRS allows you to delay RMDs until the year you retire if the plan permits it and you are not a 5% owner. That break does not apply to traditional IRAs. People who keep working and skip an IRA withdrawal because their 401(k) can wait often learn about the gap from a tax preparer in April.

Treating every account as if one withdrawal covers them all. IRA RMDs can usually be aggregated, meaning you can calculate the total across traditional IRAs and take it from one of them. Workplace-plan RMDs generally cannot be satisfied by raiding a different employer’s plan. Mixing those rules is a common way to under-withdraw.

Forgetting that the penalty still bites. If you skip an RMD or take too little, the IRS says you may owe an excise tax of 25% of the amount not distributed, or 10% if you correct it within two years. You report it on Form 5329. The agency can waive the penalty for reasonable cause if you fix the shortfall and explain what happened, but that is a request, not a guarantee. AARP notes that SECURE 2.0 cut the old 50% penalty down to 25%, with the 10% path for timely fixes, and still urges people not to risk it.

Leaving the December 31 deadline for the last week of the year. Custodians need processing time. Markets move. Mail gets delayed. AARP advisers quoted in its RMD guide warn that these withdrawals take time and that waiting until the last minute is a bad plan. Starting the request in the fall leaves room for a redo if a form bounces back.

You can always take more than the minimum. The RMD is a floor, not a cap. When in doubt, ask the plan administrator or a tax professional before the deadline, not after.

This article is for general information and is not tax advice. Rules depend on your accounts and situation. Confirm deadlines and amounts with the IRS, your plan administrator or a qualified tax professional.