Form 5329: How to Request Abatement From RMD Penalties
Use Form 5329 to Report Excise Tax (and Request Relief) Due to Not Taking Retirement Contributions
If you don't take required minimum distributions (RMDs) from your retirement accounts, you will incur an excise tax. Often called an RMD penalty, the tax is 10 or 25% of the required distribution that wasn't taken. Use Form 5329 to calculate the tax and ask the IRS to abate it. Then, attach a letter with more details on why you're requesting relief. To help you out, this post explains how to file Form 5329.
Key takeaways
- Form 5329 - used to calculate excise taxes for not taking required distributions from your retirement account, as well as other taxes.
- When to file - file if you failed to take required minimum distributions or incurred other excise taxes as outlined below.
- Requesting relief - note your relief request on the form (as detailed below) and attach a letter explaining why you're requesting relief.
To get help now, search TaxCure for a tax professional who has experience with RMDs - they can help you convince the IRS to waive the tax and talk with you about other options for your situation.
What is IRS Form 5329?
IRS Form 5329 is titled "Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts". Use this form to calculate additional taxes if you don't take a required distribution from your retirement account, as well as additional taxes due to:
- Early retirement account distributions
- Certain distributions from Education Accounts and ABLE Accounts
- Excess contributions to Traditional IRAs
- Excess contributions to Roth IRAs
- Excess contributions to Coverdell ESAs
- Excess contributions to Archer MSAs
- Excess contributions to HSAs
- Excess contributions to ABLE accounts
For example, if you cash out an IRA before you reach age 59.5 years, you must report that on Form 5329. Then, the form calculates the additional 10% tax you owe on that withdrawal.
Who should take RMDs?
As of 2025, the IRS requires all taxpayers over the age of 73 years to make minimum annual withdrawals from their IRAs, 401(k)'s, and most other retirement accounts, except for Roth accounts.
You must take your first required withdrawal by April 31st after the year you turn 73, and after that, you must take RMDs by December 31st of every year. Based on the terms of the SECURE 2.0 Act, the RMD age is set to increase to 75 years in 2033.
When to file Form 5329 if you didn't take an RMD
If you realize that you didn't take an RMD for the current tax year, you can file Form 5329 with your individual tax return. If you're not required to file an individual income tax return, you can send in this form on its own.
To calculate the tax on an RMD that wasn't taken in a previous year, you should file a 1040-X for that year along with this form. If you didn't file a return for that year, simply file the Form 5329 on its own, but make sure you use the version of that form that correlates with the tax year you didn't take the RMD.
For example, say that you realize that you didn't take out an RMD for tax year 2023. If you already filed a tax return for that year, you should file Form 1040-X along with Form 5329. If you weren't required to file a return for that year, you can just send in Form 5329.
How to Complete Form 5329 - Section IX Excess Accumulations
To complete this section, note the following on these lines:
- 52a - RMDs required for the year, from accounts for which you received a distribution of the full amount of the excess accumulation during the correction window.
- 52b - RMDs that were required for the year from all other plans.
- 53a - Amount distributed during the tax year from all qualified plans from which you received a distribution of the full amount during the correction window.
- 53b - Amount distributed to you during the tax year from all other plans
- 54a - The difference between 53a and 52a times .10
- 54b - The difference between 54a and 54b times .25
That's a bit overwhelming, so keep reading for explanations of how to file this form in various situations.
Reporting Excess Retirement Account Accumulations |
||
|---|---|---|
| Scenario | How to Report | Excise Tax Rate |
| Didn’t take an RMD during the tax year | Report on lines 52a, 53a, and 54a of Form 5329 | 25% |
| Didn’t take an RMD during the tax year but corrected it before filing | Report on lines 52b, 53b, and 54b of Form 5329 | 10% |
| Didn’t take an RMD from a previous tax year and didn’t report it | File Form 1040X and attach Form 5329. If not required to file 1040, send Form 5329 on its own. | 25% or 10% if corrected during window |
| Reported an RMD that wasn’t taken, then corrected after filing | File 1040X and amend Form 5329 | 10% |
You didn't take an RMD during the current tax year
Let's say you're filing your 2025 return in April of 2026. You were supposed to take $15,000 from your 401(k), which you did. However, you were also supposed to take $10,000 from your IRA, and you forgot.
Here's how to report that on Form 5329:
- Line 52a
- Line 52b $25,000 - that's the total amount of your RMDs for 2025
- Line 53a
- Line 53b $15,000 - that's the amount you took out
- Line 54a
- Line 54b $2500 - the difference between lines 52b and 53b times .25
You didn't take an RMD during the current tax year but you corrected it before filing your return.
Now, let's continue with the above example, but let's say that before filing your 2025 tax return, you realized that you didn't take the $10,000 withdrawal and you took it out in February of 2026 - that's within the correction window, so you complete the form as follows:
- Line 52a $10,000 - 2025 RMDs from accounts from which you received a full distribution during the correction window.
- Line 52b $15,000 - all other RMDs required for 2025.
- Line 53a $0 - amount taken out during the tax year, from retirement accounts from which you took a full distribution during the correction window.
- Line 53b $15,000 - that's the amount you took out on time.
- Line 54a $1000 - difference between line 52a and 53a times .1.
- Line 54b $0 - the difference between lines 52b and 53b times .25
Amending a prior year return to report an RMD that wasn't taken
Imagine you were supposed to take a $20,000 RMD in tax year 2023, but you only took $15,000, and you didn't realize the problem until two years later. You've also missed the correction window. In this case, you file a 1040-X for tax year 2023 with Form 5329.
If there were no changes to your income, you don't have to make any changes to your tax year 2023 1040 form. But you note the following on Section IX of Form 5329:
- Line 52a $0 - 2023 RMDs from accounts from which you received a full distribution during the correction window.
- Line 52b $20,000 - All other RMDs required for 2023
- Line 53a $0
- Line 53b $15,000 - that's the amount you took out on time.
- Line 54a $0
- Line 54b $1250 - the difference between lines 52b and 53b times .25
Amending a prior year return to report an RMD that was corrected during the correction window
Let's continue with the above scenario, but now, imagine that once you realized you didn't take the distribution, you were able to correct the problem during the correction window. As you can see, the numbers stay the same as in the above example, but they move from the b lines to the a lines.
- Line 52a $20,000 - 2023 RMDs from accounts from which you received a full distribution during the correction window.
- Line 52b $0 - All other RMDs required for 2023
- Line 53a $15,000 - that's the amount you took out on time from the accounts that were corrected during the correction window.
- Line 53b $0
- Line 54a $500 - that's the difference between line 52a and 53a times .1.
- Line 54b $0
What if you report tax due to excess accumulation, but then you take a distribution during the correction window?
Now, say that you filed your return on time and reported the 25% excise tax on an RMD that you didn't take. But then, you take a distribution during the correction window. In this case, you simply file an amended tax return.
You'll send the IRS a copy of the original Form 5329 that you filed, but you'll also file a new version of the form. The original one will show a 25% excess tax, while the amended form will show the 10% excise tax. That reduces how much you owe and can lead to a refund if you've already paid.
How to request abatement using Form 5329
To request abatement, simply note "RC" (short for reasonable cause) along with the amount you want abated next to line 54a and/or 54b. Then, write the amount on these lines as if the IRS has already approved your request for abatement.
Here's how that looks if you were supposed to take a $10,000 RMD and you want the full excise tax abated.
- Line 52b - $10,000
- Line 53b - $0
- Line 54b - $0 (RC - $2500)
Then, attach a statement detailing why you deserve penalty abatement. The IRS generally accepts serious issues as reasonable cause - for instance, death, serious illness, imprisonment, loss of records, or natural disasters. However, in this situation, you may be able to argue that you weren't aware of the requirements.
Consider getting a tax professional to help you - they know how to effectively present these arguments in front of the IRS, and they can help you avoid common errors related to RMDs. In addition to using this form, you will also need to write a letter to request to have the tax abated - this is sometimes referred to as an RMD penalty waiver letter.
Sample Form 5329 tax abatement request
Imagine that you were supposed to take $48,000 in RMDs for the current tax year. You generally take out $4000 per month, but you missed the last three months of the year because you were hospitalized with a severe illness. However, before filing the current year's return, you take the missing distribution during the correction window.
When you file your current year's return, you complete Form 5329 as follows:
- Line 52a $48,000 - Tax year RMDs from accounts from which you received a full distribution during the correction window.
- Line 52b $0 - All other RMDs required for the tax year
- Line 53a $36,000 - that's the amount you took out on time from the accounts that were corrected during the correction window.
- Line 53b $0
- Line 54a $0 (RC - $1200)
- Line 54b $0
Then, you attach a note that says the following:
To whom it may concern,
In the current tax year, my RMDs were $48,000. I missed $12,000 in distributions because I was hospitalized for three months and didn't take my distributions for those months. I took a $12,000 distribution from that account during the correction window. I am requesting reasonable cause abatement of the $1200 excise tax due to being hospitalized.
Sincerely,
Taxpayer
What happens after you file?
If you request abatement on Form 5329, don't wait for a response — the IRS generally does not respond to requests to waive this tax. Instead, if the IRS agrees with your request for reasonable cause, they will simply accept Form 5329 as filed.
If they don't accept your request, they will assess the tax against you. They may send you a deficiency notice, or they may just start sending collection notices like the CP14, CP501, and so on.
If the IRS denies your request to waive the tax, you can appeal. Depending on the situation, you may need to pay the tax under dispute and request a refund. Or you may be able to appeal without paying — review all of your notices carefully to see your appeal options, and talk with a tax professional for guidance. You may need to provide more details about why you deserve a reasonable cause abatement of the excise tax.
Use TaxCure to Find a Tax Professional
A tax professional can help you determine which steps to take next -- they can help you calculate your RMDs, figure out how much to withdraw during the correction window, file Form 5329, request abatement of the tax, and help you set up payments with the IRS if necessary.
However, it's important to work with a specialist who has experience with this particular tax problem. TaxCure allows you to search for tax pros, narrowing down the results based on your tax problem and/or the solution you want. Don't get stuck paying an excessively high tax bill during your retirement — instead, use TaxCure to find high-quality help today.