@vze56v6x wrote:
Thank you
so I did contribute for the 1st 6 mos ar my old job to a 401k but nowhere near maxed it out.
if i do a backdoor rollver to roth wont i still pay a penalty on the $2k
the financial planner implied i would but how can i figure out what that would be
If you convert the $2K traditional pre-tax IRA to a Roth, you pay income tax, but no additional penalty. By paying the income tax now, you pay no income tax in the future on the money or the gains, as long as you wait until age 59-1/2 to withdraw it. (That's $11,000 tax-free in 30 years against $500 today.)
The tax is simply whatever the income tax would be on $2000. If you are in the $200K range of income, that would be 22% or 24% depending on your marital status, plus 3-13% depending on which state you live in.
