Converting 401 to Roth

[Ray]

I had a client call and both spouses were approached by some broker suggesting that they convert their 401's to a Roth.

Their combined income is about $150,000 and they have two children.

I have never been a big fan of Roth's and always felt that a person had to have pretty good retirement income to make a Roth advantages.

My first thought was 'what's in this for the broker'.

Can someone give me a thought or two on the advantage of adding extra taxes to these peoples return.

Their income is almost all from W-2 work.

Thanks

[JohnH]

Roughly what's the additional tax liability, and will they be able to pay it with funds outside the plan?

Will the Roth conversion invlove moving money from one fund into a new one, or does the money stay in the same investment with only the tax classification changing?

[JoshinNC]

Please elaborate on your

I had a client call and both spouses were approached by some broker suggesting that they convert their 401's to a Roth.

Their combined income is about $150,000 and they have two children.

I have never been a big fan of Roth's and always felt that a person had to have pretty good retirement income to make a Roth advantages.

My first thought was 'what's in this for the broker'.

Can someone give me a thought or two on the advantage of adding extra taxes to these peoples return.

Their income is almost all from W-2 work.

Thanks

dislike of ROTH's.