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?

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 

@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? 

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 

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

@fanfare - my experience - at two large brokerages is 'yes'. 

the real lesson learned is don't wait until the last day! 

I think I read that in Secure 2.0 that was passed last week, the penalty is now "only 25%" for failing to meet the RMD, but any "mea culpa" is 10%...no more free passes.... effective 2023. 

The bill does reduce the excise tax (penalty).

There is nothing in the bill that rescinds  the authority of the Secretary to waive that tax for reasonable cause.

@NCperson