401k to Roth IRA rollover

[Guest fenway4ever]

I recently left my employer where I held a 401k plan. I was just wondering if when I roll over the $5,000 of 401k funds into a Roth IRA I will have to pay any penalties? Also, after the rollover, is that money considered my personal contribution, so that if I withdrew it at some point I would not be taxed? Thanks for your help.

Peter Gunn

[jevd]

You must rollover the QP distribution to a traditional IRA first then convert to a ROTH. See pub 590 for special rules regarding conversions to ROTH and when penalities apply. The conversion should not be penalized but a withdrawal may be if not held for 5 years etc. Also ou must qualify for the conversion. See Pub 590 for AGI limits.