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Capital Gain

Forum|Forum|6 years ago
February 22, 2020
1 reply
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Hi,

I changed my job early this year. I transfer my pre-tax 401k to Roth IRA.

However, my old 401K administration transferred all my gain to my new Roth IRA account.

I already did my tax for 2019 year.

Can I start to invest my new Roth IRA ?

How can I pay the capital gain for my old 401k ?

Regards,

Michael

Not A Product Question

Best answer by DanaB27

Yes, you should be able to start contributing to your Roth IRA as long as it is within the limits. Please see Amount of Roth IRA Contributions You Can Make for 2020 for details. The conversions from your 401k to Roth IRA are not considered contributions.

You will get a 1099-R for the conversion you conducted at the beginning of 2020 and it will be included on your 2020 tax return.

D

DanaB27Answer

Yes, you should be able to start contributing to your Roth IRA as long as it is within the limits. Please see Amount of Roth IRA Contributions You Can Make for 2020 for details. The conversions from your 401k to Roth IRA are not considered contributions.

You will get a 1099-R for the conversion you conducted at the beginning of 2020 and it will be included on your 2020 tax return.

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