I have 4 accounts:
Vanguard traditional IRA with ~$90k in it
Vanguard Roth IRA ~$25k in it
Vanguard 401k from a former employer that has ~$40k in it
Mass Mutual 401k from current employer that has ~30k in it
I’ve already contributed $5,500 to the Roth IRA for 2017, but due to some unexpectedly large bonuses at work, I am over the income limit for directly contributing to a Roth.
What’s the best way for me to keep that $5,500 as a Roth contribution and also allow myself to make future Roth IRA contributions?
What I was thinking is:
Roll my Vanguard traditional IRA into my current 401k
Call Vanguard and recharacterize my 2017 Roth contributions as post-tax non-deductible traditional IRA contributions
Backdoor convert that traditional IRA into the Roth IRA
Is this possible? I know you can’t co-mingle pre and post-tax traditional IRA contributions and then backdoor Roth without a tax penalty, but will draining that account by rolling it into my 401k before recharacterizing the current year’s Roth contribution avoid that?