ForumsMega Backdoor Roth Solo 401kTD Ameritrade After Tax to ROTH IRA Gone Wrong

Forums Solo 401k Mega Backdoor Roth Solo 401k TD Ameritrade After Tax to ROTH IRA Gone Wrong

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  • #53310

    Roberta E.
    Participant

    We opened our After-Tax Solo401k accounts at TD Ameritrade via paperwork from Sol401K.net. The paperwork all seems correct, the internal transfer form seems correct (also noted that the transfer is a conversion for 2021) as indicated in the video.

    However, here is the response from TD Ameritrade when I questioned the transaction in my account and what I believe to be an incorrect classification of the monies. They classified the money as a contribution for the year 2022. Am I missing something in this transaction or did TD Ameritrade open the wrong type of account to begin with.

    “After reviewing the previously completed transfer and speaking with our Retirement Account Services team, it appears a transfer from your Tax Exempt Trust Individual 401(k) to your Roth IRA cannot be coded as a Roth Conversion as requested in your message. Movements from a Tax Exempt Trust Individual 401(k) account to an IRA account have to be listed as a rollover or contribution. If this was not your intention, you will want to speak to a qualified tax professional or call us at 800-669-3900 to speak with our Retirement Account Services Team directly to go over your available options following this transfer.”

    I have an email into the Solo401K Team, as well as, our Senior Advisor at TDAmeritrade so we will get this straightened out but any insight into what the missing piece of this puzzle is?

  • TD Ameritrade After Tax to ROTH IRA Gone Wrong

    4 Replies
  • George Blower

    Top SubjectSolo 401k,Daily Live Webinar
    Top ForumsSolo 401k, Daily Live Webinar

    George Blower

    Roberta E.

    Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

    September 27, 2022 at 6:12 pm

    From the perspective of TD Ameritrade’s Roth IRA, a transfer of after-tax funds in a Solo 401k to a Roth IRA that occurred in 2022 (even if the source of the funds in the after-tax Solo 401k sub-account is a voluntary after-tax solo 401k contribution for 2021) would be considered a rollover for 2022.

    • Roberta E.

      Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k
      Top ForumsSolo 401k, Mega Backdoor Roth Solo 401k

      Roberta E.

      Roberta E.

      Top SubjectSolo 401k,Mega Backdoor Roth Solo 401k

      September 27, 2022 at 7:50 pm

      One more thing to note George,

      From TD Ameritrade: “Movements from a Tax Exempt Trust Individual 401(k) account to an IRA account have to be listed as a rollover or contribution.”

      They have classified the movement of the money as a contribution. Shouldnt it have been classified as a “rollover”, as you indicate not a contribution?

      Thanks again

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