Hello! I have question or two about a future possible scenario that I could run into and was curious if my understanding is correct. I understand the basics of a backdoor Roth. But, let’s say that you leave a company for a new position and decide to roll over your current traditional 401k to an IRA. Additionally the new position gives a MAGI above the allowable limit to contribute directly to a Roth so backdoor would be the only means to contribute to Roth. My understanding is that in this situation, you could contribute and do a partial backdoor. But that you would have to use the pro rata rule and have to pay taxes on the percent of after tax money in all your IRA accounts. Is this correct that this would still apply in that case? If so, how do you determine what is after tax in a 401k?
Thanks in advance!
Submitted May 17, 2018 at 08:03PM by Broquelaure https://ift.tt/2IrCFm0
