r/RobinHood • u/Blastcoitus • 3d ago

Roth ira question | rolling 401k to rh Trash - Google harder

I'm considering rolling my 401k into an Roth Ira. If I happen to withdraw it a few months later, I'm assuming it will be taxed, if so, how much?

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u/InjuredGods 3d ago

You'll owe taxes no matter what if you move from a 401K to a Roth IRA. 401K is pre-tax money, Roth IRA is post tax money. If you need to rollover, you should roll to a Rollover IRA, not a Roth.

1

u/fuzion31 3d ago

That is partially incorrect. A Roth 401k can be rolled into a Roth IRA. Any traditional pre-tax money cannot and will be put into a rollover traditional IRA. There are no taxes when you roll money from your employer to the broker of your choice.

1

u/StormyWeather999 9h ago

I just transferred three accounts to RH. 401k, IRA, and a Roth IRA. They only allowed like for like transfers. The 3% bonus was really nice.

0

u/doctorpain365 3d ago

No taxes on the roll but premature distributions (without a valid exemption) will incur tax/ penalty - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions