I rolled over a traditional IRA into a Roth IRA. My financial consultant recommended rolling over only a portion of the account and withholding some funds to cover taxes immediately, instead of rolling over the entire balance. As a result, I received two 1099-R forms. One reports the larger amount rolled over to the Roth IRA with distribution code 2, while the other shows the amount withheld for taxes, with distribution code 1, which typically signifies an early distribution. My question is: will I incur any penalties or higher taxes on the portion withheld for taxes? Thanks
