Abstract--Physical transceiver implementations for multipleinput multiple-output (MIMO) wireless communication systems suffer from transmit-RF (Tx-RF) impairments. In this paper, we study the effect on channel capacity and error-rate performance of residual Tx-RF impairments that defy proper compensation. In particular, we demonstrate that such residual distortions severely degrade the performance of (near-)optimum MIMO detection algorithms. To mitigate this performance loss, we propose an efficient algorithm, which is based on an i.i.d. Gaussian model for the distortion caused by these impairments. In order to validate this model, we provide measurement results based on a 4-stream Tx-RF chain implementation for MIMO orthogonal frequencydivision multiplexing (OFDM).