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January 13, 2024
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I'm planning on doing a Mega back door roth conversion(401k employer) with after tax contributions later this year. Will the gains taxed as income or capital gains?

  • January 13, 2024
  • 1 reply
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Since I can only do this once a year,  I will have gains or losses.  Will the gains or losses be treated as capital gains or income on my 1099-R?
Best answer by dmertz

Ordinary income.  Investments inside a retirement account do not receive capital-gains treatment.

1 reply

dmertzAnswer
Employee
January 13, 2024

Ordinary income.  Investments inside a retirement account do not receive capital-gains treatment.