Author Topic: Backdoor Roth contribution in the same year as a tIRA to 401k rollover?  (Read 430 times)

scantee

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At the beginning of this year, I started a new job and rolled over the 401k at my old job to an existing tIRA with other funds. Last month I then rolled over the entire balance of my tIRA into my 401k. The current balance of my tIRA is $0. I'd like to now do a backdoor Roth contribution, but I'd like confirmation that I will not be hit with tax liability for having a balance in my tIRA for part of the year.

My understanding is that the only balance that matters is the end of the year balance. Is that correct? In researching this, I've not been able to find a definitive answer to this question. I've found several examples of people who are in the reverse situation -- they did a backdoor Roth contribution first, earlier in the year, and then rolled over a 401k to their tIRA later in the year -- who end up with tax liability on the rolled over amount, but very little about my situation.

I am hoping for greater clarity prior to making my contribution since I know they can no longer be recharacterized.

Can anyone confirm that my tIRA balance from earlier this year will not be subject to tax?

MDM

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Re: Backdoor Roth contribution in the same year as a tIRA to 401k rollover?
« Reply #1 on: October 19, 2018, 01:44:14 PM »
Can anyone confirm that my tIRA balance from earlier this year will not be subject to tax?
Yes.

See Form 8606.