yfinkle
Returning Member

Backdoor Roth IRA Mistake

I made a mistake and missed the point about the pro rata rule. In 2019 I contributed 6k (non-deductible) to IRA then converted that 6k to Roth soon after. I have 12k in another traditional IRA account. Based on the pro rata rule, the split will be 4k taxable and 2k (basis) non taxable. 
 
Now i need to fix it by rolling it over into my Employee 401k.
 
The dilemma here is I don't want to rollover my IRA basis (non deductible) money into the 401k, I want to convert that to a Roth so I don't have to deal with the tax situation of a 401k in the future or potentially get double taxed on the basis if I forget about it in 25 years.
 
Okay so I want to make sure I do it right now. Would the steps below work to satisfy the IRS?
 
1. Rollover 8 of 12k to my employer 401k, leaving the 4k on which I already paid taxes in the IRA.
2. Convert the 4k to Roth right away, this should not be a taxable event since I already paid taxes on this money right?
3. Move forward with backdoor Roth as usual?