401K rollover and Backdoor Roth Conversion

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I am used to doing a backdoor roth conversion on my taxes but this year I have an additional complexity. I did a rollover of $3000 from my 401k into an IRA (Code G) after leaving a previous job as a total distribution. Before this event I contributed $6000 to my traditional IRA and immediately converted to a Roth IRA to complete the backdoor IRA. I know I need to pay taxes on the $3000 and not the $6000 but I'm not positive how the final 1040 should look. My current 1040 looks like:

4a: $9000

4b: $3000

5a: $3000

5b: 0

I'm not sure if the 4b and 5b should be swapped so that the taxable amount is for the pension and annuities instead of IRA distribution.

My 8606 form shows $6000 for lines 1,3, 5,13. Then it shows $9000 for line 16, $6000 for 17, and $3000 for 18 which is the taxable amount. Am I paying taxes in the right way by paying for it under the IRA distribution and not the pension?

MaryK4

Alumni - Intuit

Can you clarify if you did the rollover to the Roth account?

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abjoAuthor

Level 2

The rollover was to the traditional IRA and then immediately converted to the Roth.

MaryK4

Alumni - Intuit

Yes, it is correct. The 5a amount (which should have a ROLLOVER indicator) represents the 401k to traditional IRA which is not taxable so the 5b 0 is correct. Then, 4a amount is everything converted to the Roth, of which $6000 is nondeductible (tax free) so the 4b represents the $3,000 that was the 401k moved into the Roth. @abjo

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