I'm planning on doing a Mega back door roth conversion(401k employer) with after tax contributions later this year. Will the gains taxed as income or capital gains?

[mstrobel7]

Since I can only do this once a year,  I will have gains or losses.  Will the gains or losses be treated as capital gains or income on my 1099-R?

[dmertz · Accepted solution]

Ordinary income.  Investments inside a retirement account do not receive capital-gains treatment.