401k (All Non-Deductible) to Traditional IRA to Roth IRA Conversion

[toney-l-brandon]

On Jan 31, 2017 my employer closed. I had $2,581 in their 401k plan of which all were contributions made by the employer (non-deductible). After the firm closed I rolled over the funds into a Traditional IRA with my broker to ultimately rollover into a Roth. My funds are currently in my Traditional and I want to rollover into my Roth. My broker is requesting I fill out a Direct Conversion request. My question is is this rollover amount subject to tax? If so, what is the correct percentage to take out and is there a table of which I can look this amount up?

Thank You

[Fern · Accepted solution]

The conversion from a traditional IRA to a Roth IRA will be subject to income taxes. The Roth designation implies that the funds are deposited on an after tax basis and income taxes have not yet been paid on the funds you are converting to a Roth account.

The income taxes will depend on your filing status and your income bracket. Use the charts below to determine your tax rate.