Financial Information
Questions on moving 401K to Roth IRA CD and taxes?
Question : Questions on moving 401K to Roth IRA CD and taxes?
I moved some money last year from a 401k funds to a Roth IRA CD at a bank. However, I am wondering how this works for tax purposes. I did make a little interest on it. However, it was less than 200$ . How does this work for tax reasons? Is the whole amount taxable, the interest, or none at all?
ira cd
Best answer:
Answer by jlf
You need to be more specific. Was it a conventional 401(k) account? And you converted that to a Roth? Or did you just withdraw your 401(k) and then start a Roth IRA?
depends on the type of Roth– the tax free Roth you would have had to pay the tax on the amount you converted
if it is a reg IRA, the same type as your 401 K, the interest accrues and you pay when you take distribution