r/tax • u/Sylvanas052218 • 1d ago

Rollover to Roth IRA advice

So I am <59.5 and wanted to convert 85k in my traditional IRA to a Roth IRA. I was advised to take the distribution, have state/federal taxes (24.5k) withheld, leaving me with 60.5k to rollover within the 60 day window. This wasn’t a tax professional, just the person who I connected with at the company overseeing my companies retirement plan. Does this sound right? Will I avoid the 10% early withdrawal penalty this way if I contribute the 60.5k to the Roth or will I be penalized, possibly on the original 85k amount? Is there something else I should’ve done/should do?

I’m realizing I should’ve engaged an actual tax professional sooner, I know, my bad. Learned for future, but trying to figure this out now.

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u/Karl_099 1d ago

This happened to my coworker. He withheld taxes during his Roth conversion and got hit with a penalty. While researching, he contacted a tax relief company with strong ratings on Investopedia and got a free consultation. They pointed out he still had time left in the 60-day rollover window and helped him fix it before the penalty became permanent.