No. of Recommendations: 0
Since you can roll it over into the Roth IRA and still control where it's invested, why would you be willing to pay the tax AND the Penalties when there is no reason to do so? Liquidity is not that important for you, as you stated you "have a decent amount of money".
(Paying penalties is a last resort for emergencies for those who have NO money.) ALSO, and more important,
taking your money could put you in a higher tax bracket. If you are in a 28% or 31% tax bracket, the additional IRA distribution could put you in a 39.6% bracket, coupled with the 10% penalty would mean your distribution would be taxes at 49.6%.....not a good idea. You don't state how old you are. To roll or not to roll into the new ROTH is an individual decision based on many factors, all of which need to be taken into consideration before the numbers are calculated. Go back over some of these messages and look at the IRA vs Roth IRA to convert or not convert.
Thirdly. By withdrawing your retirement from the protection of the IRA you also lose the deferrment of taxes on the regular IRA earning and you'd lose the tax free benefit on the earnings of the new ROTH IRA. I see no reason for you to do this and many reasons not to do it.
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