2025 RMD · IRS Form 5329 · June 2026
If you missed an inherited IRA RMD in 2025, the IRS can treat the shortfall as an excise "additional tax" of 25% of the missed amount. That tax may be reduced to 10% if you correct within the IRS correction window. If an excise tax applies, you generally report it on Form 5329 for tax year 2025. Start by confirming whether a 2025 distribution was actually required — not every inherited IRA has an annual 2025 RMD.
A missed inherited IRA RMD means you had a required minimum distribution due from an inherited IRA for calendar year 2025, but you withdrew less than the required amount, or nothing at all. Whether that happened depends on the inherited IRA rules that apply to your situation, including when the original owner died, whether they died before or after their Required Beginning Date (RBD), and your beneficiary category.
A lot of inherited IRA guidance lumps very different situations together. That is risky. Some beneficiaries are subject to annual distributions, while others may mainly be under the SECURE Act's 10-year rule. For some inherited IRA beneficiaries, there may be no annual 2025 RMD to miss.
Those details matter because the IRS does not treat every inherited IRA the same way. If you are not sure, ask the custodian for the inherited account's RMD calculation output or worksheet for 2025, plus the account setup history.
The practical order is: confirm the requirement, calculate the shortfall, correct it as soon as possible, and document everything for Form 5329. The IRS's reduced-rate path depends on correction timing and the relief rules that apply, so waiting can cost you.
Start with these documents:
You are trying to answer one question first: was a 2025 inherited IRA RMD actually due? If yes, move to the next step. If not, you may not have a penalty issue at all.
The shortfall depends on the RMD required under your specific inherited IRA rules in Publication 590-B (2025) and the Form 5329 instructions. If you have a shortfall, that amount is the missed distribution the IRS uses for the excise tax calculation.
If you still have a shortfall, take the corrective distribution as soon as you can and keep the confirmation. Correction timing and documentation matter because the penalty can be reduced from 25% to 10%, subject to the applicable IRS relief rules.
If an excise tax applies, you generally report it on Form 5329 for tax year 2025. The form is where the IRS expects you to calculate the additional tax tied to the missed distribution when applicable.
For a missed inherited IRA RMD in 2025, the IRS may assess an additional tax of 25% of the missed amount. If you correct within the IRS correction window, that additional tax can be reduced to 10%, depending on the applicable IRS relief rules and the facts of the case.
| Missed amount | 25% additional tax | 10% if corrected in time |
|---|---|---|
| $10,000 | $2,500 | $1,000 |
| $20,000 | $5,000 | $2,000 |
The excise tax is based on the missed amount, not your entire inherited IRA balance. So if your required distribution was $12,000 and you took $9,000, the shortfall is $3,000. The additional tax is then figured on that $3,000.
Not every inherited IRA has the same annual distribution rule in 2025. Some beneficiaries are under the SECURE Act's 10-year rule, and IRS guidance changed over time for certain beneficiaries and years. For many non-spouse beneficiaries, annual RMDs were waived for tax years 2021–2024, and whether a 2025 annual RMD is required depends on the account, the beneficiary category, and the decedent's death timing.
That does not mean every 2025 inherited IRA must have an annual payout. It means you should not assume relief from prior years still covers you.
The biggest misunderstanding is simple: "10-year rule" does not always mean "no distributions until year 10." Depending on the facts, annual distributions may still be expected. Another common mistake is assuming the custodian would have warned you if a payout was due. Custodians can help, but the beneficiary is still responsible for checking the rule that applies.
You probably need a closer look if:
The most common calculation mistake is using the wrong rule set. For inherited IRAs, the required amount depends on the beneficiary rules in Publication 590-B (2025) and IRS beneficiary guidance, not just on a general IRA calculator.
Gather these items before you calculate:
If you owe an excise tax for a missed inherited IRA RMD, you generally report it on Form 5329 for tax year 2025. The IRS instructions explain how to calculate the additional tax and where to report it.
If you believe the miss was due to reasonable error and you are taking reasonable steps to remedy it, you can request a waiver through the Form 5329 process. A written explanation of what happened, when, and how you corrected it is part of that request.
The IRS rules for a missed RMD do not change just because the inherited IRA holds gold. What changes is the operational side: liquidating metals takes time, and if a distribution was required by December 31, 2025, custodian processing delays may have contributed to the miss.
Good documentation of the custodian's process — when you requested the distribution, when it was processed, and what delays occurred — can support a waiver request if the miss was due to custodian timing rather than personal choice.
For 2026 and future years: if you hold a Gold IRA, start the distribution process well before the December 31 deadline. Build in time for metal liquidation, processing, and wire transfer.
The IRS may assess an additional tax of 25% of the missed amount. If you correct within the IRS correction window, that additional tax can be reduced to 10%, depending on the applicable IRS relief rules and the facts of the case.
No. Some beneficiaries are under the SECURE Act's 10-year rule, and whether a 2025 annual RMD was required depends on the account, the beneficiary category, and the decedent's death timing. For many non-spouse beneficiaries, annual RMDs were waived for tax years 2021–2024 in certain situations, but whether a 2025 annual RMD is required depends on your specific facts.
The shortfall is the required amount minus what was actually distributed. The required amount depends on the inherited IRA rules in Publication 590-B (2025) for your beneficiary category. The IRS generally uses the prior December 31 (2024) account balance and the applicable IRS factor.
If an excise tax applies, you generally report it on Form 5329 for tax year 2025. The IRS instructions explain how to calculate the additional tax and where to report it. Even if the tax is zero after correction or relief, keeping records documenting why is still important.
The correction window timing rules are defined in IRS RMD penalty guidance and depend on the failure and correction circumstances. There is not a single universal deadline for every 2025 inherited IRA miss. Acting quickly — ideally within two years — is important because the penalty can be reduced from 25% to 10% if corrected in time.