The Black Box

[dieselfuel]

That's very tricky and I'm no expert.

From my understanding, if you leave your employer, and roll it over, you have to pay taxes the part that you put in that was tax free. What you earned, you don't pay taxes on.

It's hard to find good info on this subject.

I researched it a few months ago, and figured I'd do better if I rolled over the 401k now into a Roth.

The distrubution at retirement is tax free on the Roth.

Do your own DD and seek tax advice from an accountant or another expert in this field.

I know one thing though: If you take a lump sum from your employer, they are required by law to withhold 20% and to pay the govment'.

That doesn't sit well with me. If your employer decides they're not going to pay the taxes, you're still liable.

By the way, if your employer withholds (as they should) taxes from your paycheck, and they don't pay the tax bill, guess who the IRS goes after?

YOU!

That happened to a friend of mine. He had to "pay" the taxes twice.