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imagine how ecstatic I am about being able to put thousands and thousands of dollars into the Roth just by paying the taxes on it*. I sorta feel like I'm cheating.......... this is a way to totally get around that maximum contribution thing.

This brings up a question... is this treated as income and taxed regularly as such when you convert?

If it is, then IMO it's not a good option... depending on how much is in there, that could bump you up more than one tax bracket it seems to me.

For example, if I were in the lowest tax bracket and had managed to accumulate $200k in my 401k (over a period of years), and then wanted to roll it to a Roth upon leaving employment, wouldn't that count as $200k of income, and put me into a much higher tax bracket for that money and possibly any salary for that year?


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