RMD

dodboo — Tue, 10 Mar 2026 06:47:41 GMT

I need to take my first RMD by end of year. My problem is sole stock I have on my IRA has gone down from $25 to $1.50. I have a substantial paper loss and I don’t want to sell any stock to pay my RMD. Should I just pay the penalty to avoid selling any of this stock? I hope it will one day recover but if I sell shares I lose the upside.

Re: RMD

KochuK — Wed, 16 Nov 2022 23:07:08 GMT

Hi dodboo, thank you for attending the event and post questions.

Understand your dilemma.

Quote

What happens if a person does not take a RMD by the required deadline?

If an account owner fails to withdraw a RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline, the amount not withdrawn is taxed at 50%. The account owner should file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored AccountsPDF, with his or her federal tax return for the year in which the full amount of the RMD was not taken.

Unquote

Recommend that you check with the plan custodian as to what is the RMD for tax year 2022 to gauge the impact of 50% penalty.

Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that the IRS publishes in Tables in Publication 590-B.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions#4

If your sole stock has been in decline, 12/31/2021 balance may be much higher than the current value, hence a larger RMD amount and 50% penalty.

It is an investment decision weighing the RMD penalty now vs. future upside of the stock.

Hope the above helps. Thank you.

topic RMD in Get your taxes done using TurboTax

RMD

Re: RMD