@dmertz Reopening this thread to inquire more about rolling IRA back to 401k.
To recap, I ran into the pro-rata rule when filing for 2021 because I 1/made non-deductible IRA contributions and converted all of them to roth IRA and 2/converted my 401k from my previous employer to a traditional IRA account. Now part of my rollover IRA in 2/ is considered “post tax” money. To avoid confusion in the future, I am thinking about 1/extracting the basis through a Roth conversion and 2/roll my rollover IRA into 401k.
How do I determine the basis to convert to Roth? I was looking at my tax form from this year, and I think the basis would just be the “taxable portion” of my Roth conversion listed in 8606. Is that right? Meaning in your example, I would extract the $5,500 basis basis through a Roth conversion.
Are there any other tax implications to my plan of 1/extracting the basis through a Roth conversion and 2/roll my rollover IRA into 401k? Would extracting the basis through a Roth conversion be treated as extracting part of pre-tax and part of after-tax income?
Timing wise, would the above be doable by end of the year?
