topic By error, I made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021. Is there anyway to fix this? in Retirement tax questions

By error, I made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021. Is there anyway to fix this?

grant128 — Sun, 06 Feb 2022 08:17:35 GMT

Accidentally made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021, in amount of approx. 150k all at one time. It will bump my tax bracket from 24% to 35%. I didn't file 2021 tax yet but I may owe approx. 60k in tax. Is there anyway to fix this?

Re: By error, I made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021. Is there anyway to fix this?

dmertz — Sun, 06 Feb 2022 12:35:35 GMT

No. An In-plan Roth Rollover is irrevocable.

Note that you are paying no more than about $16,500 additional tax beyond what you would have paid had this all been in the 24% tax bracket. If it will be a long time until you need to take the Roth money out, the fact that future gains will be tax free instead of taxable will likely make up for the additional taxes paid now.

Re: By error, I made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021. Is there anyway to fix this?

fanfare — Sun, 06 Feb 2022 12:23:44 GMT

Probably not.

Talk to the Financial Institution managing your 401k.

Re: By error, I made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021. Is there anyway to fix this?

grant128 — Tue, 08 Feb 2022 18:06:21 GMT

Thank you for your input. Yeah, I hope I can make it up with the future gains.😅

Re: By error, I made in-plan conversion from 401k (pre-tax) to Roth 401k (after tax) 50 days ago in 2021. Is there anyway to fix this?

grant128 — Tue, 08 Feb 2022 18:07:29 GMT

Thank you. I talked with the Financial Institution, and they said they can't do anything. Auch but lesson learned..