It depends. If your 6% penalty is $1200, then it sounds like your IRA CD is being treated like a contribution and not a rollover, thus you are being taxed on this. To clarify, did you receive a 1099R for both transactions. If so, what are the distribution codes in Box 7 on both 1099R's?
@mderamus4
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
