My client has a loss on an IRA due to total distribution of less than the IRA's basis. Is there no 10% penalty in this situation (my client is under 59 1/2, and doesn't otherwise meet any exceptions to the penalty)?
Also, 2007 Form 8606, has a note below line 15 referring to potential pental on amount on "line 15c" Where is line 15c? I see it on Form 8606 for 2008, but not the 2007 Form.
Thanks