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<< Taxpayer suffered a significant early withdrawal penalty on CD's he held in a traditional IRA, when he converted the IRA to a Roth. Can he take a miscellaneous itemized deduction subject to 2%, or take it as a credit on line 30 of the 1040, or is he SOL. He had significant basis in the IRA, before converting. >>

Unless the value at the time of conversion was less than the basis, there's no deduction.

Phil Marti
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