So here’s the situation: I will soon start a new job and have the option of either 1. leaving my 401K with my current employer, or 2. roll it over to my new one, or 3. roll it to a self-directed rollover 401K
I want to be able to self-direct at least a portion of it, but that would complicate my Backdoor ROTH, so I am thinking about this plan: 1. Backdoor ROTH in early January (edit: I would put $6000, post tax, in a empty traditional IRA account, and transfer the money to a ROTH IRA as soon as the fund is in place, and this is NOT from my 401K), then 2. Immediately after that is done, roll 10% (for example) of my old 401K to a self-directed rollover401K/trad IRA 3. Manage this account for 11 months and roll it over to my new company’s 401K before December 31
Since 8606 form would only care if you have any money in your traditional IRA on December 31 of that year to determine your tax on Roth conversion, as long as the rollover money is in and out before that day, there shouldn’t be any implication right?
Submitted July 03, 2021 at 07:33AM by HuuuughJass https://ift.tt/2TpJK1e
