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Level 2
posted Feb 6, 2023 9:05:33 PM

Will Pro-rata Rule be applied on my 2022 tax return?

I just did rollover of traditional IRA to 401K in January 2023 (total $20,000 rolled over, and no money left in traditional IRA any more)

 

In this month (February 2023), I am planning to do a backdoor Roth IRA for 2022, I am going to add $6000 to traditional IRA which has zero balance at the moment, then convert to Roth IRA.

 

1. Will Pro-rata Rule be applied on my 2022 tax return?

2. If yes, then $20,000 which I rolled over from traditional IRA to 401K last month is a mix of pre-tax and after-tax money, is my understanding correct?

3. If the $20,000 is a mix of pre-tax and after-tax money, how do 401K company track this information? Will they get this information from IRS or I have to call 401K company, and let them know the ratio of pre-tax and after-tax for the $20,000?

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1 Replies
Level 15
Feb 6, 2023 9:26:43 PM