To avoid the 50% excess accumulation penalty, you must make the distribution by December 31, 2016. Intentionally delaying the distribution beyond year-end would not constitute reasonable cause for the IRS to waive the penalty.
You do have the option to simply not take the RMD and to pay the $1,378 penalty.
You could take the distribution as an in-kind distribution, but your cost basis would become the value on the date of distribution and the rebound would be taxed as a capital gain when realized.
If you have multiple traditional IRA accounts, you can satisfy this RMD with a distribution from the other traditional IRA account.
To avoid RMDs going forward and to minimize taxes, you should probably consider converting the traditional IRA to a Roth IRA while the value is temporarily down.
