Hi,
I ran into the pro-rata rule for tax year 2021 when 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. I didn't know about the "mixing coffee and cream" part last year - I paid additional tax on the "taxable amount" for the Roth conversion, and now part of my rollover IRA in 2/ is considered “post tax” money.
I am thinking of leaving both "post tax" money and "pre tax" money in traditional IRA. May be an ignorant question, but when it comes to retirement and distribution of IRA, how do I know whether I am withdrawing the "post tax" portion or "pre tax" portion? Would Fidelity keep this information and figure out my appropriate tax rate then? Or would I figure this part out when I file my taxes?
Thanks in advance!
