Hello,
My wife and I have been maxing out our 401ks have done backdoor ROTHs for a few years. This year, my wife switched jobs and her employer had only offered a traditional IRA. When she left the job we rolled the money into a traditional IRA and then right to a ROTH fully knowing we would have to pay tax on the money that we converted from ROTH to traditional. Since we have cleared out the traditional IRA do we have to think about the pro rata rule when doing the backdoor roth? From everything we can find online, I believe if at the end of the 2020 year (the year we did the 401k rollover) we do not have any pro rata rule to worry about. To summarize, the traditional IRA would have 0 dollars and the ROTH would have both the backdoor contribution AND the newly rolled over money from the IRA. Any help would be great!
Another thing I was also discussing with a friend is if you can roll the full balance of a traditional IRA to a ROTH IRA (pay the tax) and then also do a backdoor ROTH in the same year. I believe this should also be possible since again the balance is 0 in the traditional IRA for that calendar year.
Thanks,
Brandon
