Our household income will be above the MAGI for contributing directly to Roth IRA. So, we have to do a backdoor Roth conversion every year and have been for the past few years seamlessly.
However, I have very recently changed jobs and would like to transfer over my regular 401K from my previous employer's plan to my IRA account.
I am worried about the pro-rata rule.
I can contribute the entire $7,000 for this year's IRA right away and get it converted to Roth. And if I convert my 401k later in the year to IRA. Will the pro-rata rule still apply this year?
original posted by sravanchowdary to r/personalfinance on Wed, 28 Feb 2024 02:24:15 GMT.