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?
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?
01306
1 Best answer
dmertz
Level 15
Jan 13, 2024 8:45:44 AM
Ordinary income. Investments inside a retirement account do not receive capital-gains treatment.
1 Replies
dmertz
Level 15
Jan 13, 2024 8:45:44 AM
Ordinary income. Investments inside a retirement account do not receive capital-gains treatment.