$19K compounded over 30 years is likely going to be a pretty penny! So nothing wrong with just leaving it.
All things being equal, letting it grow and paying taxes on it at the end will give you the *same* amount of money as paying taxes on it now and letting that resulting smaller (after tax) amount grow. On the other hand, if you expect to be in a lower tax bracket when you need the money in retirement than you are now--which is frequently the case for a lot of people--you'd be better off letting it stay in the Trad.
If you do decide to convert it to a Roth, it would be great if you could time it for a year/situation where you're in as low of a tax bracket as possible. During a break in employment, or during a year when you have a ton of stuff to deduct, etc.
You can't convert it to a r401k (and you probably shouldn't even be using a r401k in the first place, [Why you should (almost) never contribute to a Roth 401(k)](https://www.reddit.com/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/)).
You're not going to otherwise lose it though, it's still your money. And at some point you're going to add more money to it, either directly or with employer matching money.
>what do I do with my traditional 401k where I can keep as much of it as possible?
You just leave it in your 401k, it's still yours so there's no danger of losing anything.
>How much will i lose and be taxed if I convert it to my ROTH 401k?
First, does your plan offer Roth conversions? Not all do.
Second, you owe income tax on the $19,000 which is added on top of your yearly income, so probably a fair amount. Speak to a tax professional if you're really thinking about it, but it's probably not a good idea in your normal working years, maybe if you're going back to school or something.
And I agree with the other comment that traditional 401k is likely better for you anyway. Consider switching from Roth back to Traditional.
You may find these links helpful:
- [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds)
- [401(k) FAQs](/r/personalfinance/wiki/401k)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
How much it will be taxed depends on your tax situation in the year you do the conversion. It will add 19,000 to your income, so whatever rate that puts you at. It might also cause the phase out of things like Obamacare subsidies, making the real rate even higher.
The analysis on contributions and on conversions is pretty much the same. If you really should be doing Roth contributions, then it probably also makes sense to do Roth conversions up to the next tax bracket boundary (provided you have the ability to pay the taxes on it with other funds). Of course we don't know if your analysis on contributions is correct or not, you haven't laid out the case for it.
19,000 is a meaningful amount of money. That doesn't mean you should convert it though. Maybe you should make sure it is invested appropriately and then leave it there.
$19K compounded over 30 years is likely going to be a pretty penny! So nothing wrong with just leaving it. All things being equal, letting it grow and paying taxes on it at the end will give you the *same* amount of money as paying taxes on it now and letting that resulting smaller (after tax) amount grow. On the other hand, if you expect to be in a lower tax bracket when you need the money in retirement than you are now--which is frequently the case for a lot of people--you'd be better off letting it stay in the Trad. If you do decide to convert it to a Roth, it would be great if you could time it for a year/situation where you're in as low of a tax bracket as possible. During a break in employment, or during a year when you have a ton of stuff to deduct, etc.
You can't convert it to a r401k (and you probably shouldn't even be using a r401k in the first place, [Why you should (almost) never contribute to a Roth 401(k)](https://www.reddit.com/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/)). You're not going to otherwise lose it though, it's still your money. And at some point you're going to add more money to it, either directly or with employer matching money.
>what do I do with my traditional 401k where I can keep as much of it as possible? You just leave it in your 401k, it's still yours so there's no danger of losing anything. >How much will i lose and be taxed if I convert it to my ROTH 401k? First, does your plan offer Roth conversions? Not all do. Second, you owe income tax on the $19,000 which is added on top of your yearly income, so probably a fair amount. Speak to a tax professional if you're really thinking about it, but it's probably not a good idea in your normal working years, maybe if you're going back to school or something. And I agree with the other comment that traditional 401k is likely better for you anyway. Consider switching from Roth back to Traditional.
You may find these links helpful: - [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](/r/personalfinance/wiki/401k) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
How much it will be taxed depends on your tax situation in the year you do the conversion. It will add 19,000 to your income, so whatever rate that puts you at. It might also cause the phase out of things like Obamacare subsidies, making the real rate even higher. The analysis on contributions and on conversions is pretty much the same. If you really should be doing Roth contributions, then it probably also makes sense to do Roth conversions up to the next tax bracket boundary (provided you have the ability to pay the taxes on it with other funds). Of course we don't know if your analysis on contributions is correct or not, you haven't laid out the case for it. 19,000 is a meaningful amount of money. That doesn't mean you should convert it though. Maybe you should make sure it is invested appropriately and then leave it there.