Originally Posted by
Bluedriver
From a BlueDude post on the previous page:
"You can't make company contributions Roth directly as yet but you can do it indirectly already. Just make an in-Plan Roth conversion of company contributions. You'll have to pay taxes on everything you convert, from an outside source (you can't use Plan funds to pay the taxes, and it would be counterproductive if you could). This is no different than making company contributions Roth, as you'd be liable for taxes on those also."
His post sounds as if you'd pay taxes on the entire conversion, not just the gain. Which makes sense from a tax perspective. Are you sure you're doing it correctly?
We are saying the same thing, but my point was that if you wait say 2 years to convert $10k of JB 401k to Roth, you'll likely pay MORE in taxes (assuming you have gains on those JB dollars; lately, it might well have been a loss).
Personally, I'd MUCH rather pay taxes on it today than 15-20 years in the future as I withdraw the funds. No one knows what the taxes will be in 2043, but the odds of them being higher are pretty solid.