No. of Recommendations: 0
"so what kind of tax penalties are we talking here? would it be based on your current tax bracket or something else? i'm asking because, i've thought about transferring over my traditional ira to a roth as well"

Since your money is already in a traditional IRA and you'd like to transfer to a Roth, the money doesn't come out of retirement account and there isn't any penalty. The previous poster was talking about taking money out of a 401k and maybe doing it incorrectly.
The amount transferred to a Roth is taxable income on the date of the transfer. So it will be added to your income next April and the applicable tax will apply.
You don't HAVE to transfer your whole traditional IRA, although you can do so.

Best wishes, Chris

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
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.