How much of a Roth IRA deposit is taxed?

how is a roth ira taxed

I've been researching Trad vs Roth for a bit, but nowhere do I see it actually quantified. I am converting a 401k to an IRA, and we're dealing with low amounts right now, though it may make a difference as time goes by. I only have around $800 in my 401k. Does my income level have bearing on what percentage. show more I've been researching Trad vs Roth for a bit, but nowhere do I see it actually quantified. I am converting a 401k to an IRA, and we're dealing with low amounts right now, though it may make a difference as time goes by. I only have around $800 in my 401k. Does my income level have bearing on what percentage of that is taxed? I am unemployed and am getting less than $10k

a year on unemployment, so income taxes are currently negligible. If that has something to do with how much of the IRA contribution is taxed, I should clearly go with Roth.

I am 28. Both the 401k and soon-to-be IRA are with ING. I expect my tax bracket to rise between now and retirement, so that seems to indicate Roth.

Direct Rollover - Request the funds from a qualified pension plan, 401(k), or 403(b) to be transferred to an ING DIRECT Traditional IRA.

My source of confusion: on the form itself, there is a checkbox saying "Employer Plan direct rollover to an ING DIRECT Traditional IRA" then "Employer Plan direct rollover to an ING DIRECT Roth IRA", which sure makes it sound like I can go directly from 401k to Roth.

Source: answers.yahoo.com

Category: Taxes

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