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?

mderamus4 · ‎April 14, 2025

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?

DaveF1006 · ‎April 14, 2025

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"

Expert does your taxes

Do it yourself

Resources

Support

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?