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Any capital gain taxes needed for After-Tax 401k Contributions -> In-Plan Roth Conversion -> Roth IRA?

Forum|Forum|3 years ago
March 9, 2023
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I made some after-tax 401(k) contributions via my job.

I set up automatic in-plan Roth conversion for the after-tax 401(k) contributions. Assuming there are no capital gain taxes for this step.

I then roll over the after-tax Roth amount to Roth IRA. There are some capital gains. Do I need to pay taxes for these capital gains?

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Best answer by JulieS

No, you do not report any gains or losses for assets in Roth IRA accounts.

Income from a Roth is normally tax free and is only reported when there is a regular distribution. Rollover amounts are not taxable.

If you have a taxable distribution from a Roth IRA, it is ordinary income. Click here for more details.

JulieSAnswer

No, you do not report any gains or losses for assets in Roth IRA accounts.

Income from a Roth is normally tax free and is only reported when there is a regular distribution. Rollover amounts are not taxable.

If you have a taxable distribution from a Roth IRA, it is ordinary income. Click here for more details.

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