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Greetings, Laura, and welcome.

<<My husband has just changed jobs, and now has an "orphaned" 401K account with about $10K in it. We were thinking of rolling this into a Roth IRA to be able to manage the money better (the 401K is in a Manulife account - we were very unimpressed). From what I've read, it seems like a good idea, but will it realy adversely affect our taxes?>>

If it's already in a traditional IRA and if you roll that to a Roth IRA in 1998, you must declare one-fourth of the accounts value as income over the next four years and pay taxes on that amount each year. In 1998, that means you'll have about $2.5K to declare as extra income. In a 28% marginal tax bracket, that means you would pay an extra $700 in taxes to Uncle Sam this year. Only you can say whether or not that has an adverse impact on you. My guess is if you leave the rollover money alone for ten or more years, you will be money ahead. Read my posts and Kilmarnoch's posts on this issue to see why.

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