You guys are just amazing to patiently walk me through this! Really really appreciate it and thanks to you, the situation is becoming clear to me. I am glad I caught the mistake now when my IRA balance is still < $50K.....had this continued (since I plan on doing a back door Roth every year going forward), pro rata would have really screwed me over.
I am going to work my company brokerage now to start the process of emptying out my first IRA (the one that has the combination of pre and post tax $$).
One remaining question. I now know how to calculate the % of my IRA that is composed of pre and post tax money. If I do the 401K rollover today, I am assuming the amount of the rollover will be based off the total balance of all my IRAs today.
Here are my rough numbers as of today:
1. Total IRA balance: $44000 in my first IRA (mix of pre and post tax) + $6000 (2022 after-tax IRA contribution ear-marked for Roth conversion...I paused on the conversion because I caught the mess I am in) in my second IRA = $50000. The first IRA is the one I want to zero out right now.
However, since the $44000 is invested, the exact number is going to fluctuate...that is part of my confusion.
2. Total of all my after-tax dollars: $5500 from 2015 IRA + $6000 from 2020 IRA + $6000 from 2021 IRA + $6000 from 2022 IRA = $23, 500.
3. Current basis of my IRA : I just manually filled in 2021 8606 and Line 14 = $13,924. Link to my 2021 8606 is here.
4. Pre-tax balance in my IRAs that I should roll-over into my 401k today: $50000-$13,924 -$6000 = $30, 076
Is this correct?
