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Level 2
posted Apr 1, 2023 1:05:10 PM

How do I enter a mega backdoor Roth IRA conversion?

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?

 

0 1 8998
1 Best answer
Expert Alumni
Apr 2, 2023 5:59:10 AM

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

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Enter your Form 1099-R (with code G)
  5. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "Yes"
  6. 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).

1 Replies
Expert Alumni
Apr 2, 2023 5:59:10 AM

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

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Enter your Form 1099-R (with code G)
  5. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "Yes"
  6. 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).