Haven't been able to find an answer to this question anywhere:
A 50 year old client has a ROTH IRA that only has the funds that were converted from a traditional IRA (including earnings) a year ago. The owner wants to take a distribution (no earnings) and he would owe 10% early withdrawal penalty for breaking the 5 year rule on conversion funds.
No problem here, however, he meets the qualifications for a covid-19 distribution which are not subject to the 10% early withdrawal penalty. Would this exemption for a CRD override the 10% early withdrawal penalty for breaking the 5 year rule? I've been unable to find any clarification on this. Anyone have any thoughts or cites on this? Thanks
