Hello Dana @DanaB27 ,
Thanks you very much for the explanation on the 1099-R related to the recharacterization.
You are correct, my traditional IRA has a non-taxable portion resulting from a 401K rollover. I will study the pro-rata rules you provided for when I am ready to do the conversion (after I file 2022 taxes as this is getting complex! haha)
Can you please explain what you mean by this sentence: "The Backdoor Roth only works if your traditional/SEP/SIMPLE IRAs are empty." My understanding from the help pages is "A backdoor Roth IRA allows you to get around income limits by converting a traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is restricted if your income is beyond certain limits, but there are no income limits for conversions." Do you mean if my traditional IRA has no pre-tax funds so there are no pro rata calculations after I remove the pre-tax funds currently in the traditional IRA?
Appreciate your help and expertise!
