Quote:
Originally Posted by MTG#10
Are there any taxes/fees/penalties for rolling over a 401k into a Roth IRA?
The company I work for is being bought out by a much larger company. They said we cant contribute to 401k until we've been with the new company for a year. They gave us an option of rolling our existing 401k's to a new Roth IRA that they will set up, then once we're eligible can roll that money back over to their 401k program. But I just opened my own Roth recently so I figured I might as well dump it into that one.
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Do you know if your 401k is a traditional or a Roth? Traditional is much more common I think (you deduct it from your taxable income), but I would have guessed they'd roll it into a traditional IRA instead of a Roth if that was the case.
To your question, rolling a traditional into a Roth will incur taxes, but then your withdrawals won't be taxed. Rolling a traditional into a traditional won't incur any taxes since the taxation rules basically stay the same.