My income exceeds the contribution threshold for IRA. I am trying to do back door Roth. A few years ago, I rolled traditional IRA into my prev employer's 401k plan. However, the problem with this approach is I'm limited to trade funds and stock offered by that plan only.
It's my understanding that as long as all my traditional IRAs are rolled into 401k before 12/31, there will be no aggregation if I did Roth conversion. If that's true, can I take the following steps:
- Begin of the year, roll almost all positions from 401k to traditional IRA account A
- During the year, trade from IRA account A with wide choice of stock, future ...
- At some point, contribute to a dedicated traditional IRA B account and immediately convert to Roth IRA
- End of the year, close all IRA account A positions to cash and roll it back into the 401k account.
- Repeat the next year
Can someone please confirm if this will cause any trouble at tax time?
