George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and his IRA is now worth $38,100. He is planning on transferring (or rolling over) the entire balance into a Roth IRA account. Georges marginal tax rate is 19 percent.

What are the total taxes and penalties to George if he takes $38,100 out of the traditional IRA and puts the entire amount into a Roth IRA?

Please explain how you got each number in your solution and/or where the number comes from.