- His Fidelity 401(k) containing only pre-tax contributions.
- His large-ish rollover IRA containing pre-tax money from a previous employer's 401(k). TD Ameritrade, no account fee.
- His Roth IRA containing after-tax money from previous employer's 401(k). TD Ameritrade, no account fee.
- His and her traditional IRA containing max non-deductible contributions from 2016 plus growth. Edward Jones account, frozen since fiduciary law took effect earlier this year. Account fee $40/year/each.
- Nov 2017, pull rollover IRA into the 401(k), removing its pre-tax money from the equation before 31 Dec 2017. I don't think the pro-rata rule applies in this case because it's not a taxable event?
- Jan 2018, max out non-deductible contributions to his and her IRA for both 2017 and 2018 ($22k total).
- Mar 2018, Roth conversion for his IRA, sending pre-tax to a new TDA IRA and after-tax to existing TDA Roth.
- Mar 2018, Roth conversion for her IRA, sending pre-tax and after-tax to new traditional and Roth IRA at TDA.
- Get out of EJ
- Move existing non-deductible IRA contributions under Roth umbrella without owing tax on the growth
- Max out tax-advantaged for 2017 and 2018
- Set the stage for backdoor Roth in future years
Am I missing any pitfalls here? If I understand correctly, the rollover IRA needs to disappear before year end 2017, and the Roth conversion needs to happen in 2018, or the pro-rata rule would apply to the conversion (which would be bad, the rollover IRA is 5x bigger than the IRA).