Roth In-plan conversion and Traditional IRA

1 reply
49 views

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

dmertzAnswer

Level 15

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.