I am not sure how you structured your rollover. The information I found stated that an esop payout to a Roth IRA is taxable, but will be tax-free when withdrawn (if withdrawal is according to Roth IRA rules.)
There are income limits for contributing to Roth. If TurboTax is indicating a 6% penalty, that indicates that you contributed directly to a Roth and must pay a penalty. You are allowed if your income allows to contribute $6,000 or $7,000 depending on your age.
- If you are single, you must have a modified adjusted gross income under $122,000 to contribute to a Roth IRA for the 2019 tax year, but partial contributions to a Roth IRA if your income is between $122,000 and $137,000. If you are married filing jointly, your MAGI must be less than $203,000, with reductions beginning at $193,000.
[Edited 03.25.20 | 8:14 am]
