My friend said last year he transfer his IRA Rollover money into a regular trading account, non-IRA at another brokerage. He thinks either accepting brokerage or the one where he had his rollover money before...screwed up as he did NOT get any tax bills, nor was his account adjusted for conversion or penalty. It went from a tax-differed account straight to taxable account with no tax consequences. Is this even possible? It sounds like he pulled his money out TAX FREE.