ForumsMega Backdoor Roth Solo 401kQuestions on the After-Tax to Roth IRA Conversion Form

Forums Solo 401k Mega Backdoor Roth Solo 401k Questions on the After-Tax to Roth IRA Conversion Form

  • Questions on the After-Tax to Roth IRA Conversion Form

    Mark Nolan replied 2 months, 4 weeks ago 2 Members · 2 Posts
  • 1 Reply
  • Top SubjectMega Backdoor Roth Solo 401k
    Top ForumsMega Backdoor Roth Solo 401k

    Dominick W
    Top SubjectMega Backdoor Roth Solo 401k

    January 12, 2024 at 11:02 pm

    I am a little confused about two line items in the “After-Tax to Roth IRA Conversion Form” and need some clarification.

    I am planning to transfer the entire After Tax 401K account balance of $26,005 to a Roth IRA account. $26,000 of this is the voluntary after tax contribution which should not be taxed during the conversion. $5 of the $26,005 is the interest earned while the voluntary after tax contribution fund was in the account. The $5 portion should be taxable during conversion. (Fidelity automatically put the money into a money market fund. I have ask Fidelity to keep the fund in the account as cash, but Fidelity says they can’t do it…..)

    How should I answer the following two questions in the “After-Tax to Roth IRA Conversion Form”?

    Enter the amount of Basis Converted to ROTH IRA in 2024:

    $26,000 (I assuming the term basis means the nontaxable portion during conversion)

    Enter the amount of Gains Converted to ROTH IRA in 2024:

    $5

    Dominick W
  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    January 24, 2024 at 6:28 am

    Once you move the remaining funds in the voluntary after tax brokerage account to the Roth IRA, you would list the following on the conversion form.

    Basis converted (i.e., the contribution amount) = $26,000

    Gains converted= $5.00

    Also if the gains trickled in after the conversion, they can be converted next time you make a voluntary after-tax contribution.

Related Blog Posts