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The advice posted assumes that the OP has a pre-tax 401(k) plan [the most common offered by employers]. So, yes, in this scenario taxes would be owed if the 401(k) is rolled over and converted into a Roth IRA (post-tax).

However, there are some Roth 401(k) plans out there. I know because that's how I elected to set up my plan with my employer. In my case I would be able to rollover the 401(k) into a Roth IRA with no tax consequences at some future date [after switching jobs, of course].
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