I left my job earlier this year, and while sitting with a representative from Fidelity, which manages my ex-company's retirement plans, I was asked what I wanted to do with my 401k (about $100k worth) and given the option to roll it over to a Roth IRA. My big question now is, when does that money get taxed since the 401k's taxes are deferred and the Roth IRA money's taxes are paid up front? I just read somewhere that the rollover amount will be treated as income on my taxes this year and get taxed that way. If that's true, I feel like I made a huge mistake by rolling it over to a Roth IRA.
Is there any way I can correct this mistake?