Traditional 401k to Roth 401k recharacterization?

Forum|Forum|5 years ago
March 2, 2021
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In October 2020, I moved $100k from my current employer's Traditional 401k to their Roth 401k, completely closing the Traditional 401k.

I paid the taxes out of pocket immediately to the IRS.

I entered my 1099-R into Wages & Income and labeled it a rollover.

Do I recharacterize the $5k that was automatically taken from my paycheck and placed into the Traditional 401k plan (subtracting my employer's matching) in 2020 before the rollover?

Best answer by dmertz

Entering the Form 1099-R and indicating that you rolled it over to a Roth 401(k) is all you need to do with regard to this transaction.

There is no such thing as recharacterization of 401(k) contributions. Nothing changes with regard to the amount you contributed to the traditional account or the employer's matching contribution.

dmertzAnswer

Level 15

Entering the Form 1099-R and indicating that you rolled it over to a Roth 401(k) is all you need to do with regard to this transaction.

There is no such thing as recharacterization of 401(k) contributions. Nothing changes with regard to the amount you contributed to the traditional account or the employer's matching contribution.