Roth In-plan conversion and Traditional IRA

Forum|Forum|3 years ago
April 17, 2023
1 reply
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Hi,

My wife is currently employed and contributes to 401k and after-tax 401k to roth in-plan conversion through her current employer for 2022. She has received a 1099-R for the roth in-plan conversion.

However, she also has a traditional IRA who's contribution was made in 2020 by rolling over her previous employer's 401k into IRA. Note, no contributions were made to this account in 2022.

I read somewhere online which mentions the pro-rata rule for backdoor roth. https://www.forbes.com/advisor/retirement/backdoor-roth-ira-pitfalls/

( See section Pro-Rata Rule and Backdoor Roth Conversions )

I don't know if anything special applies to her since we didn't do traditional backdoor roth. All roth conversion was through after-tax 401k to roth.

Thanks.

TurboTax Deluxe Online

Best answer by dmertz

The balance in your wife's traditional IRAs has nothing to do with determining the taxable amount of an In-plan Roth Rollover. The taxable amount of the In-plan Roth Rollover from the after-tax 401(k) account is determined only by the amount of earnings in the after-tax 401(k) account and the balance in the after-tax 401(k) account.