<prompt> Human: My wifes previous employer is apparently attempting to make changes to the 401k plan they offer their employees. We dont know the details of what exactly they are trying to do, but my wifes friend an ex-coworker who is still working at that company has contacted her saying they basically need her to leave the plan so that they can make the change. They claim that none of the current employees can be moved into this new plan until all participants including former employees evidently are moved out of the old one. I believe she cant be moved into the new one with the other current employees because she does not work there anymore.My wife left the 401k untouched with her old employer when she left. She is not eligible to enroll in the 401k plan with her new employer yet needs to be employed for several more months before she is eligible.The friendex-coworker has suggested that she could roll over the 401k into a Roth IRA. Since Roth IRA is post-tax, wouldnt this mean that we would have to pay taxes on it? Our current income level, and thus tax bracket, is higher than we would expect to be at retirement age. Additionally, our AGI we file jointly is above the limit for Roth IRA anyway, so is rollover even an option?What other options are there? Obviously, we dont want to be forced into penaltiesfees just to make it convenient for her old company.  <response>: If the 401k is traditional, i.e. pre-tax, then the funds could be moved into a traditional IRA with no taxable event occuring. 