How do I enter a mega backdoor Roth IRA conversion?

Forum|Forum|3 years ago
April 1, 2023
1 reply
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Context: I did mega backdoor roth conversion last year (i.e. made after-tax money in 401k contribution and

requested my 401(k) provider to automatically make an in-service distribution of my after-tax contributions into your Roth 401k every month).

Question: I got 1099-R form from my broker (fidelity). Is there a step by step guide for mega backdoor conversion just like there is a step by step guide for backdoor conversion?

Once i enter the mega backdoor Roth IRA conversion, what should i check in Form 1040 to ensure i entered things correctly?

Best answer by DanaB27

All you need to do is enter your Form 1099-R and answer the follow-up questions:

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Enter your Form 1099-R (with code G)
On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "Yes"
On the "Rollover 401(k) to Roth 401(k)" screen answer "Yes" (this should have the amount from box 5 already entered)

You can check Form 1040 line 5a has the distribution amount and 5b has the taxable amount (it should be $0 since you only converted after-tax funds).

DanaB27

Answer

Employee Tax Expert

All you need to do is enter your Form 1099-R and answer the follow-up questions:

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Enter your Form 1099-R (with code G)
On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "Yes"
On the "Rollover 401(k) to Roth 401(k)" screen answer "Yes" (this should have the amount from box 5 already entered)