IRS Form 5329 · Excise Tax · June 2026
There is no single automatic waiver that applies to every missed inherited traditional IRA RMD. Relief may come from a limited IRS notice for specific years or from a case-by-case waiver request showing reasonable error and reasonable remediation steps. The penalty is generally 25% of the missed amount but can drop to 10% if corrected within the IRS correction window.
An inherited IRA RMD "waiver" can mean two different things. It may refer to notice-based relief the IRS gives for certain missed RMD years, or it may mean a request-based waiver where you ask the IRS to forgive the excise tax because the mistake was reasonable and you corrected it.
Path 1: Notice-based relief. This is limited, year-specific relief. It applies only when the IRS says it will not assert the excise tax for certain missed RMDs and only if you fit the notice's rules.
Path 2: Waiver by request. If notice relief does not apply, the IRS says the penalty may be waived if you can show reasonable error and that you are taking reasonable steps to fix the shortfall. You may need to file Form 5329 and attach a letter of explanation.
For missed inherited traditional IRA RMDs, the IRS says you may have to pay an excise tax on the amount not distributed as required. In the IRS FAQs, that penalty is commonly framed as 25% of the amount not taken by the deadline, but the exposure and any relief depend on the year and your facts.
Those are not the same thing.
Whether there was a real miss depends on the inherited IRA rules themselves. The IRS says the required distribution rules vary based on:
If the wrong schedule was used, the "missed RMD" may really be a calculation or classification problem.
Some people search for "automatic" penalty relief because the IRS has issued limited-year notices that say it will not assert the excise tax for certain missed RMDs if the conditions are met. That relief exists, but it is not blanket relief for all inherited traditional IRAs and all years.
Notice 2022-53 is one of the most searched relief notices. It applies to certain missed RMDs in 2021 and 2022 and uses the concept of a "specified RMD."
The practical takeaway:
The IRS's Publication 590-B (2025 edition) references Notice 2024-35 for certain missed RMD relief in 2024. This is not a permanent inherited IRA RMD penalty waiver for every case. Publication 590-B points to Notice 2024-35 for limited, condition-based relief in 2024; readers must check the notice's eligibility requirements.
Notice-based relief is best thought of as:
If your situation fits, you may be in better shape. If not, move to the request-based waiver path.
If your missed inherited traditional IRA RMD is outside a notice window, the IRS still may waive the excise tax if you qualify under its reasonable error standard.
The IRS says penalty relief may be available if:
A strong explanation usually includes:
Reasonable steps usually means you did not ignore the problem once you found it. Good records help:
The IRS FAQs say missed RMDs may be subject to an excise tax of 25%. That is the number to keep in mind when a distribution is short or missed, but the actual outcome depends on the facts and whether any relief applies.
Taking the money later can help correct the shortfall, but it does not automatically erase the tax issue. You still need to know:
Penalty relief, including waivers based on reasonable error, is not guaranteed.
Gather:
Ask:
If you do not fit one of those windows, move on.
Your packet should include:
Keep it plain and factual. Cover: what happened, why the error was reasonable, when you found it, and what steps you took to fix it. Do not overstate your case.
Save the original statement, the correction confirmation, the explanation letter, any custodian correspondence, and any calculation worksheets.
| Question | If yes | If no |
|---|---|---|
| Was the missed year 2021 or 2022? | Check Notice 2022-53 and whether your missed amount is a specified RMD under the notice | Move to waiver request |
| Was the missed year 2024? | Check the relief referenced in Pub. 590-B / Notice 2024-35 and its eligibility requirements | Move to waiver request |
| Can you show reasonable error and reasonable steps? | Prepare Form 5329 + letter | Re-check facts and records |
| Was the inherited IRA schedule correct? | Focus on penalty relief | Reassess whether the miss happened at all |
No. There is no single automatic waiver that applies to every missed inherited traditional IRA RMD. Relief may come from a limited IRS notice for specific years (such as Notice 2022-53 for 2021–2022 misses) or from a case-by-case waiver request showing reasonable error and remediation steps.
The IRS says penalty relief may be available if the shortfall was due to reasonable error, you are taking reasonable steps to fix it, you file Form 5329, and you attach a letter of explanation. That letter is how you explain what happened, why it happened, and how you corrected it.
The IRS FAQ says missed RMDs may be subject to an excise tax of 25% of the amount not taken by the deadline. This can be reduced to 10% if corrected within the IRS correction window, subject to IRS rules.
No. Notice 2022-53 applies only to certain missed RMDs in 2021 and 2022, and only if your missed amount qualifies as a 'specified RMD' under the notice's definitions. If your missed year is not 2021 or 2022, this notice likely does not solve your problem.
Form 5329 is the IRS form used to report the additional tax tied to a missed RMD and, if eligible, request a waiver. Filing it with a clear, factual letter of explanation is how you formally make the waiver request to the IRS.