in [Event] Ask the Experts: Tax Law Changes - One Big Beautiful Bill
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I converted $800 after-tax 401k to Roth IRA (Mega Backdoor) last year, but just realized I didn't max out pre-tax 401k. The $800 is already on my 1099R form. I heard the mega backdoor won't work if pre-tax 401k isn't maxed out, but I'm not sure what tax problem there will be. Is the rollover legit? Should I withdraw the $800 from my Roth IRA?
Thanks a lot for the help.
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As long as your 401(k) play allows rollover of after-tax money to an IRA it makes no difference. Your 1099-R should have your contributions in box 5 and box 2a should be the box 1 amount minus box 5 which would be zero of all after-tax money.
Thanks. Do I check with my employer to see if 401k plan allows the rollover?
The plan administrator.
But you said you did the conversion last year so they must allow it. You should have a 1099-R for the distribution and it should show the after-tax amount as I said.
Yep, thank you!
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