Comments on: Starting in 2008, how will 401Ks rolled over into ROTH IRAs be taxed? http://www.iraroth.net/2010/02/starting-in-2008-how-will-401ks-rolled-over-into-roth-iras-be-taxed/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Doc http://www.iraroth.net/2010/02/starting-in-2008-how-will-401ks-rolled-over-into-roth-iras-be-taxed/comment-page-1/#comment-625 Doc Sat, 27 Feb 2010 18:30:56 +0000 http://www.iraroth.net/2010/02/starting-in-2008-how-will-401ks-rolled-over-into-roth-iras-be-taxed/#comment-625 Yes, the complete amount you roll over will be taxable in that year. Yes, the complete amount you roll over will be taxable in that year.

]]> By: Doing the Right Thing http://www.iraroth.net/2010/02/starting-in-2008-how-will-401ks-rolled-over-into-roth-iras-be-taxed/comment-page-1/#comment-624 Doing the Right Thing Sat, 27 Feb 2010 17:46:29 +0000 http://www.iraroth.net/2010/02/starting-in-2008-how-will-401ks-rolled-over-into-roth-iras-be-taxed/#comment-624 I believe everything will be taxed such as contributions, dividends, interest, and capital gains. Well, your contributions came out of your income before taxes were applied and your investments grew tax-deferred. You are going to be taxed anyway when you start withdrawing them when you retire. But now that you are going to roll it over into a Roth IRA, you pay the taxes now so that you can enjoy the tax-free withdrawals after age 59 1/2. I don't know. That's just my thinking. Maybe you should ask this question in the tax section. I believe everything will be taxed such as contributions, dividends, interest, and capital gains. Well, your contributions came out of your income before taxes were applied and your investments grew tax-deferred. You are going to be taxed anyway when you start withdrawing them when you retire.

But now that you are going to roll it over into a Roth IRA, you pay the taxes now so that you can enjoy the tax-free withdrawals after age 59 1/2.

I don’t know. That’s just my thinking. Maybe you should ask this question in the tax section.

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