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--working4free--

Level 1

Solved

Can i deduct a penalty charged because I rolled over my traditional ira before it matured to a new traditional ira in order to get a better interest % rate?

Forum|Forum|7 years ago
June 1, 2019
1 reply
4 views

I just want to know if I can deduct the penalty I was charged for rolling over my traditional IRA before it matured to another traditional IRA to get a better interest rate.

Best answer by Vanessa11_2

No, penalties are not deductible.

Vanessa11_2Answer

Level 13

No, penalties are not deductible.

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Level 15

Only an early-withdrawal penalty reported in box 2 of Form 1099-INT is deductible. An early-distribution penalty on an investment within an IRA is not reported on Form 1099-INT because the investment in the IRA is owned by the IRA, a tax-exempt entity, not by you personally.