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Step 1
Find your 401(k) statement. The statement will contain information on the account balance and the funds in the account. You will need to take this statement with you to the bank.
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Step 2
Roll over your 401(k) to a traditional IRA. Before you can convert your funds into a Roth account, you'll need to get the money out of your 401(k) and into a traditional IRA. At this point it makes sense to roll all the funds into a cash account and not into new investments. This transaction can easily be done at a local bank or credit union.
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Step 3
Convert the traditional IRA to a Roth IRA. Once the transfer is completed (this can take several days), go back to the bank and fill out the required forms to convert your new IRA into a Roth IRA.
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Step 4
Re-invest the funds in the new Roth IRA. Your new Roth IRA will be holding cash and you will most likely want to re-invest these dollars. If you want to work with the investment adviser at the bank you can; if not, you can always roll your Roth IRA to a new custodian.
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Step 5
Pay your taxes. The conversion from traditional IRA to Roth IRA will generate a current-year tax liability. Be sure to calculate the tax liability before you make the conversion. You can't use funds from the IRA to make the tax payment, so you'll need to have cash on hand. To calculate the tax liability, multiply your tax rate by the amount you'll be converting.
