My wife recently received a large ESOP payout after the sale of her company. We rolled the payout into her Roth IRA. I’m having a hard time understanding the intricacies of the tax implication here. The way I’m seeing it, since I rolled the money into a Roth IRA I’m going to need to pay taxes on that money. I can’t rationalize this to be income tax or capital gains tax? Does anyone know? Either way, the amount of taxes I’m going to owe is well beyond what we have in liquid cash. In my mind, the cleanest option is to take money from the rollover to pay taxes. I’ve never withdrawn from my IRA before, will I pay a penalty on this withdrawal? Does anyone have any recommendations for large tax burdens or is it just suck it up and figure out a way to pay it?