Each time you process a conversion of AFTER-TAX solo 401k funds to Roth IRA, please complete the following on-line form.
- If each participant is converting funds after-tax funds to a Roth IRA, please submit a separate on-line conversion form for each participant.
- It is best to submit this on-line conversion form once you have converted/moved the funds to the ROTH IRA to ensure all gains are accounted for.
- We will issue the Form 1099-R in February 2023 to report the conversion to the Roth IRA.
Conversions are reported in the year that the funds are actually moved over to the Roth account.
The solo 401k contribution rules are different from the conversion rules. Contributions can be made by your business tax return due date plus any timely filed extension for the prior year.
In sum, the voluntary after-tax solo 401k conversion will be nontaxable regardless if you convert the after-tax contributions that were made in 2021 or in 2022 for 2021.