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Originally Posted by Buehler445
Shouldn’t cost anything, but the basis will be kind of jacked. If you roll a 401k into a Roth the amount in the 401k will be tracked as separate basis. The basis and associated gains will be taxable. Roth contributions and gains won’t.
I don’t know for sure but I don’t think you get the additional benifits roth gets you on the 401k basis.
It’s not a huge deal and you’re sure not the only person to do it. But it certainly adds complexity and makes retirement tax planning tougher.
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You sure you can leave it alone like that? When I talked to Schwab about it, they told me that you have to either leave it traditional or pay the taxes to convert it to a Roth.