I am interested in a similar process so I can do a backdoor roth from cash I have in my brokerage account to prevent prorated taxes.
I have $1.2M in my rollover IRA at Fidelity. All of this is from former 401K rollovers.
I have $150K in my employer's 401K at Fidelity.
I'm 57 and will retire in ~3 years. Wife will retire in ~5 years. I will move to her insurance once I pull the plug.
I would use the Roth money to cover some expenses to keep my income in the ACA band until Medicare.
I made a tiny amount over the minimum for catchup in traditional so I'm forced to do catchup in a Roth 401K if I choose to.
I want to roll 100% of rollover IRA into employer's 401K. Once complete, move $7K in cash to IRA then backdoor Roth IRA that same $7K.
Questions
Will this remove the pro rata tax obligation? Yes if the IRA you mentioned is the only tIRA that you have (including SEP IRA and SIMPLE IRA).
Can I accomplish it this year before April 15 and still make a $7,000 2025 backdoor roth?Yes. If you do make a non-deductible contribution to IRA for 2025, document that on your 2025 taxes (part I, Form 8606).
Can I then do another $7K later in 2026? Yes. In fact you can do both contributions at one time if you want, and just 1 Roth conversion.
Is there a way to do a Mega and move more money without the tax penalty? No. The "mega" refers to something that some people can do inside their 401k plans. No way for you to do more than the IRA limit (unless you just want to convert some of your IRA money too)
Statistics: Posted by retiredjg — Tue Jan 06, 2026 8:56 am — Replies 3 — Views 165