My age 78. April 2020 I (without any knowledge) unintentionally took $27,000 out of my traditional IRA and transferred it inside Regions to a CD; effectively canceling the IRA. In the previous ten years or so I have used this IRA account to withdraw all IRA RMDs.
I am doing my TurboTax and discovered there is now a penalty of 50%. I have talked with the bank and because of their 60 day 'fix it rules' they cannot fix/advise/help. They suggested talking to a Tax Advisor.
Perhaps in part, a partial resolution is to go ahead and take the $11,000 I would have normally taken out of the $27k - and suffer the $6,000 balance in a 50% penalty. Can this penalty be carried forward and usefully utilized in some way; ie, as a down payment on next year's taxes?
Is there an IRS document that gets me out of this dilemma?
