turns out my 401k allows nonroth after tax contributions and nonhardsharp inservice distributions of after-tax funds... so I'm megabackdoor roth eligible (!?)
As I understand it, if I have $10,200 (10k contribution with $200 earnings) in the after-tax 401k, i can only roll over the $10k into a Roth IRA. The $200k would get rolled over into a traditional IRA. Does that mean I run afoul of the pro-rata rule when I want to repeat the exercise the following year? And would it stop me from doing my usual backdoor roth?
Sorry if this question is naive.
As I understand it, if I have $10,200 (10k contribution with $200 earnings) in the after-tax 401k, i can only roll over the $10k into a Roth IRA. The $200k would get rolled over into a traditional IRA. Does that mean I run afoul of the pro-rata rule when I want to repeat the exercise the following year? And would it stop me from doing my usual backdoor roth?
Sorry if this question is naive.
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