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forologia
Level 3
December 31, 2022
Question

Sold stock on 12/30 but will not be able to take RMD distribution till Jan. 3d Will I be penalized because I could not withdraw the cash from the retirement account?

As I missed the deadline because I could not receive the proceeds of the stock sale will I have to pay the IRS penalty?  Thanks for your help

6 replies

fanfare
fanfare
Level 15
December 31, 2022

you are subject to penalty but IRS always waives the penalty if you ask for that waiver on 2022 Form 5329 and explain what happened.

You will have to report the sum of two RMD distributions on your 2023 tax return.

 

@forologia 

    NCperson
    Level 15
    December 31, 2022

    @forologia lesson learned for next year: was there not the opportunity on 12/30 to transfer the stock 'in kind' from the IRA to the non-qual account and then sell it on January 3rd? 

      fanfare
      fanfare
      Level 15
      January 1, 2023

      can the broker make an in-kind distribution happen in one day?

      Maybe not.

       

      any way it's no big deal.

      suggestion: pay extra estimated tax now and have it applied to next year's tax return.

       

      @NCperson 

      fanfare
      fanfare
      Level 15
      January 1, 2023

      after Jan 15th you'll be able to make a 2023 estimated tax payment directly.

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