Christian Posted March 24 Report Share Posted March 24 A client took distribution from an existing IRA depositing the funds into a Roth IRA. In checking the Code 2 exempts her from the early withdrawal penalty of 10% correct ? Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 24 Report Share Posted March 24 If she converted the entire amount, then no penalty. I hope I'm understanding the question correctly. Quote Link to comment Share on other sites More sharing options...
Christian Posted March 24 Author Report Share Posted March 24 She converted the entire account balance and will pay regular income tax as a distribution. Code 2 exempts her from incurring the 10% early distribution penalty evidently as she is well below 591/2 years of age. Quote Link to comment Share on other sites More sharing options...
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