A: Since you apparently plan to reinvest the money rather than spend it, I do not know why you withdrew it in the first place, instead of rolling it over directly into an IRA. A rollover could have saved you all the taxes you're incurring. And, if you insist on keeping $10,000, you will also owe a 10 percent premature-distribution penalty in addition to the taxes!
But all is not lost. If you took out the money less than 60 days ago, it is possible to rectify the situation and either avoid the tax bill or get a refund when you file your tax return in April. But you must complete the rollover within the 60-day window.
With regard to your question about whether to roll these funds over to a Roth IRA or a traditional IRA, it depends on your income (your modified adjusted gross income must be less than $100,000 to rollover to a Roth), your income tax bracket (since you must pay taxes if you roll this into a Roth IRA, a higher tax bracket would favor a rollover into a traditional IRA), what you believe your tax bracket will be when you withdraw these funds in retirement, and other considerations. And you left one job (due to stress) without having another lined up (major stress). Contact a financial adviser for help.
Q: I own disability insurance. Why did the cost triple when I turned 65?
A: The cost of disability-income insurance can jump at age 65 for two main reasons: Insurers often assume that policyholders will retire and cancel their policies by age 65; if you don't, you become more likely to file a claim. Premiums are often guaranteed not to increase until age 65 -- attainment of that age gives insurers their first opportunity to raise rates. If you are still working after age 65, it may not be worth keeping the coverage any longer.