I have four retirement accounts at Fidelity right now:
1. Rollover Roth IRA (contains rollover Roth 401k funds from my first job, as well as a few Roth IRA contributions)
2. Rollover Traditional IRA (which is about 90% rollover traditional IRA funds from my first job, and 10% non-deductible traditional IRA contributions)
3. The 401(k) from the job I just left -- all traditional
4. The 401(k) from the job I just started. Current balance is $0 but the plan allows roll-ins of traditional IRAs.
Number 2 is the most relevant. If I wanted to do backdoor Roth contributions on my non-deductible traditional IRA contributions, how would I go about doing so with the least tax impact? Would I have to transfer the rollover funds to my current 401(k) and then convert the rest? Or is it simpler than that?
I agree with RnV. If you want the ability to do more back door Roth contributions, the best way to do so without paying out the ass in taxes is to roll your old tIRA (#2) into your current 401k, and do the same with your last company's 401k if you can't leave it where it is. Rolling over your most recent 401k (#3) into a tIRA will result in the same issue of taxes if you wish to continue to do the bd Roth, and on and on and on.
Shit -- I didn't realize that the other 401(k) would be a problem. I had planned on rolling it into an IRA when the other part was done, but I guess I'll be rolling it into my new 401(k).
@mrsspunky, new job is fantastic, thanks! Particularly after I found out that every Friday (this is the first Friday I've worked there) is jeans day AND bagel day. My boss and I had my one-week check-in today, and he told me that I should feel free to walk around just to chat with people. I've only ever worked in environments where social hour is seen as a big, unproductive no-no!!
And I'm actually kind of liking working in the suburbs, though I will like it more when it is warm and I can walk to more things (our office is at the end of a decently big Main Street area).