Mega Backdoor Roth Solo 401k FAQ – When is the 1099 R issued for Mega Backdoor Roth Solo 401k?
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QUESTION:
If I do the Mega backdoor Roth Solo 401(k) contribution conversion for 2023 in 2024 before the March 15 deadline is a 1099R sent in the 2024 tax year? Is there a benefit for doing it in 2023?
RESPONSE:
There is no benefit in getting it done in 2023.
The time to send the 1099-R is driven by when the money was transferred from the Voluntary After-tax Solo 401k account to the Roth Solo 401(k) sub-account.
For example, one might be making contributions for 2023 in 2024 and then converting from a Voluntary After-tax Solo 401k account to the Roth Solo 401(k) sub-account in 2024 which means that the 1099-R is not issued until 2025.
