It sounds like this is all happening in 2025? (Even though IRA contributions can sometimes be made retroactive, the conversion only happens when it happens.)
You want to end 2025 with zero pre-tax dollars in any traditional IRA. If I have this right, we have
| |
IRA account 1 |
IRA account 2 |
| March 17, 2025 |
$4000 (pre-tax from old 401k) |
$7000 (non-deductible for back door) |
| March 20 |
Rolled back into 401k, new balance $0 |
|
| March 30 |
$0 |
Converted to Roth, new balance in traditional IRA $0 |
You end the year with zero pre-tax, zero in traditional IRAs, you have a successful $7000 backdoor conversion, and the pro-rata rule does not apply.
