There is no question that this has been a terrible year in the stock market.  If you have the majority of your holdings in stocks, this can cause big problems as you may have to sell stocks at a loss in order to pay your RMD.  In addition, many seniors believe that since the stock market went down significantly this year, so too will their RMD.  This is not necessarily true.  Your RMD for this year is based on the retirement account balances at the end of 2022, not 2023.  That’s why it is always a good idea to have some cash or money market funds in your retirement accounts so that you don’t have to liquidate stocks at an inconvenient time.  If you have cash outside of your IRA, one way to avoid selling stocks is to transfer stocks equivalent in value to the RMD from the retirement account to a regular brokerage account.  That way, you can hang onto the stocks and hopefully they will recover.

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