Thank you for the response. If my understanding of your response is correct, although the $1764.71 was withheld for taxes and paid to the IRS, I still incur a 10% penalty since it was not rolled over to the ROTH IRA. Instead, had I decided rollover the whole $11,764.71 to ROTH and pay these taxes out of pocket and not as part of the distribution, I wouldn't have to worry about having to pay the 10% penalty...correct?
I will have to look further into the Form 5329 and CRD eligibility. Thanks again!
