401K rollover and Backdoor Roth Conversion

Forum|Forum|3 years ago
March 11, 2023
3 replies
47 views

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

Level 15

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

Level 15

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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