No. of Recommendations: 0
Greetings, Larsips, and welcome. You wrote:

<<I recently took my retirement in a cash balance and rolled it into a conventional IRA. If I had rolled it into a Roth IRA instead, would I have had to pay taxes on the amount. If not,would there be any way to reverse this blunder? I understand that I would have to pay taxes on the amount if I simply converted my conventional IRA to a Roth. >>

You made no blunder because you cannot transfer retirement plan money directly to a Roth IRA anyway. By law, that's not allowed. A Roth may accept rollover money only from another Roth IRA or from a traditional IRA. If the money comes from the latter, then all previoulsly untaxed money in that traditional IRA will be taxed on its conversion to a Roth IRA.

Regards..Pixy
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement