Guest jusducki Posted March 31, 2004 Share Posted March 31, 2004 Does the penalty for 'early' disbribution still apply if IRA funds were simply converted to a Roth IRA? 1099-R states Code 2 which means no 10% penalty (in my opinion) but accountant seems to think there is....thanks Link to comment Share on other sites More sharing options...
Lame Duck Posted March 31, 2004 Share Posted March 31, 2004 IRC Section 408A(d)(3) specifically provides that Section 72(t) does not apply to any rollover from an IRA other than a Roth IRA. 408A(d)(3)© provides "The conversion of an individual retirement plan (other than a Roth IRA) shall be treated for purposes of this paragraph as a distributio to which this paragraph applies." Link to comment Share on other sites More sharing options...
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