Met with a CFP

[Jluke]

I think in the traditional 401k you are going to pay taxes on the amount withdrawn each year as income.

not the growth. Might just be semantics but I could sell everything in my 401k and now it’s cash. Unless these firms are tracking those transactions and tallying up growth.

[disneysteve]

I think in the traditional 401k you are going to pay taxes on the amount withdrawn each year as income.

not the growth.

That's correct. The entire amount withdrawn is taxed as ordinary income because contributions were never taxed going in and none of the earnings were taxed. It all gets taxed when withdrawn.

[LivingAlmostLarge]

You also need to consider what happens when it goes from two to one. Rmds can be a terrible thing for the surviving spouse. That's another reason for converting. It a pure numbers game that we now have more clarity about the permeance of the tax rates for awhile possibly forever.

[ua_guy]

You also need to consider what happens when it goes from two to one. Rmds can be a terrible thing for the surviving spouse. That's another reason for converting. It a pure numbers game that we now have more clarity about the permeance of the tax rates for awhile possibly forever.

Absolutely. That is a discussion point on our agenda, both ends of the spectrum... if one of us should depart suddenly/unexpectedly before, or during early retirement. Or later on. Overall estate planning is part of our effort here as well.