Q. Can I convert a traditional 401(k) to a Roth 401(k)?
A Yes, you can do it, just like you can convert a traditional 401k to a Roth IRA through backdoor conversion.
Your Roth 401(k) will enable you to withdraw money later tax-free, although you do have to pay your current tax rate on the amount you converted.
When should you do the conversion?
Only when you believe your future tax rate will be higher than your current tax rate.
A Yes, you can do it, just like you can convert a traditional 401k to a Roth IRA through backdoor conversion.
Your Roth 401(k) will enable you to withdraw money later tax-free, although you do have to pay your current tax rate on the amount you converted.
When should you do the conversion?
Only when you believe your future tax rate will be higher than your current tax rate.
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