I’ve successfully rolled my post-tax contributions in my 401(k) to my Roth IRA, but the pre-tax earnings went to my traditional IRA. What am I supposed to do next? Ideally I’d prefer to pay the taxes on it and get it into the Roth as well.
Stuck on Mega Backdoor Roth Contribution
byu/mancy_reagan infinancialindependence
Posted by mancy_reagan
3 Comments
Wait, I believe the usual megabackdoor process is to convert after-tax 401k contributions to Roth within your 401k account.
Then if you want you can roll them to your Roth IRA.
Usually with plans like yours you leave the contributions in the traditional 401k (aka only roll over the after tax portion).
Normally people leave it in their 401k because they aren’t allowed to move it while employed.
Anyway since it’s in a Trad IRA you can convert it to a Roth. You’ll pay taxes on it as if it were income. You can also leave it. 401k, rule dependent, you can probably roll it back into that assuming you’re still employed.