IRA
We have a client that wants to transfer a CD held in an IRA account before it’s maturity. He is ok with paying the penalty but is unsure if those early withdrawal penalties are considered taxable withdrawals or are they treated the same as an advisory fee deducted from an IRA?
Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2021-07-13 16:48
They are not distributions and deducted directly from the IRA funds like an advisory fee. No 1099R is generated.