So the tax basis for the conversion, then, is the whole value of the IRA...I stand corrected that it's a two-step process. Sounds messy but would be worthwhile...

Are you currently in a Roth 401k? If not, rollovers from a standard 401k are not eligible for Roth IRA conversion.

If you are currently in a Roth 401k, you can roll your account into a Roth IRA.

That's not true, Ari. James, you ARE eligible to roll your 401(k) account directly to a Roth IRA, normally if you terminate employment first. It sounds like you may have a unique opportunity to perform an IRA rollover.

You may want to seek professional help with such a transaction since it is not common, even among financial planners.

Good luck.

Last edited 4 months ago by Walt Mozdzer, CFP®