form necessary when directly converting a 403b to a ROTH?
I know a form 8606 is to be filed when converting a TIRA to a ROTH. Is there a comparable form to be filed when directly converting a 403b to a ROTH?
I know a form 8606 is to be filed when converting a TIRA to a ROTH. Is there a comparable form to be filed when directly converting a 403b to a ROTH?
Permalink Submitted by Alan Spross on Mon, 2010-02-08 19:34
No. The taxable portion of the conversion is directly entered on line 16 of Form 1040.
The reason that a form similar to the 8606 is not needed is that there are no aggregation rules including other accounts if the QRP has after tax contributions. Also, the tracking of any after tax balance is the responsibility of the plan administrator and not the taxpayer, as is the case for IRAs. Therefore, the data transfers directly from the 1099R to the 1040.
Note that if the conversion is recharacterized, the funds must go into a TIRA, and cannot go back to the 403b.