I retired in Jan of 2024. I have a 5498 for $23,825. that I rolled over to a traditional IRA and then moved $20,000. over to a IRA CD. Is there still a penalty?

I am in Turbo and it's saying that I have to pay 6% penalty, is this correct? Or I have I entered something incorrectly?

418

Expert Alumni

Apr 14, 2025 7:02:12 AM

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

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I retired in Jan of 2024. I have a 5498 for $23,825. that I rolled over to a traditional IRA and then moved $20,000. over to a IRA CD. Is there still a penalty?