diff --git a/gcc/testsuite/gfortran.dg/dollar_edit_descriptor_4.f b/gcc/testsuite/gfortran.dg/dollar_edit_descriptor_4.f
new file mode 100644
index 00000000000..c8453ce6bc8
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/dollar_edit_descriptor_4.f
@@ -0,0 +1,16 @@
+! { dg-do run }
+! { dg-options "-std=gnu" }
+! PR98825 Test for fix of '$' edit descriptor.
+      character(30) :: line
+   10 format (i3,$)
+
+      open(10, status='scratch')
+      write (10,10) 1
+      write (10,10) 2,3,4,5
+! Check the result.
+      line = 'abcdefg'
+      rewind(10)
+      read(10, '(a)') line
+      close(10)
+      if (line .ne. '  1  2  3  4  5') call abort
+      end
diff --git a/libgfortran/io/transfer.c b/libgfortran/io/transfer.c
index 8ab0583dd55..27bee9d4e01 100644
--- a/libgfortran/io/transfer.c
+++ b/libgfortran/io/transfer.c
@@ -4020,6 +4020,8 @@ next_record_w (st_parameter_dt *dtp, int done)
 		}
 	    }
 	}
+      else if (dtp->u.p.seen_dollar == 1)
+	break;
       /* Handle legacy CARRIAGECONTROL line endings.  */
       else if (dtp->u.p.current_unit->flags.cc == CC_FORTRAN)
 	next_record_cc (dtp);