Quote:
Originally Posted by JohnN
I did the same thing, that's the way to go, convert it to an IRA. Eventually you will need to make withdrawals, when you do , if you don't need the $$$, put it into a Roth IRA. That way you can keep it invested and it's tax-free from that point on - after you pay taxes on the amount you convert of course.
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Agree with this approach (with caveat that we don’t know all the particulars of your situation, and suggest that a CFM can better help you sort this out). If you believe that capital gains taxes are going to increase in coming years, roll the 401k over into a Roth this upcoming tax season, pay the lower tax rate on the gains, then enjoy tax-free withdrawals at RMD (or earlier).