I've read up on the mega backdoor - the limits, the rules, 55k IRS limit (for 2018), how withdrawals work etc. While going through all of it I happened to come across some people saying - to avoid tax complications, make sure to either not have any pre-tax traditional IRAs or, if you do, roll them over to your employer's pre-tax 401k before doing the mega backdoor conversions.
Now the question is, would this problem exist in my situation where I have:
- pre-tax 401k rolled over into Betterment's trad. IRA from prev. employer
- Roth 401k rolled over into Betterment's Roth IRA from that same employer
- intention to start after-tax 401k with new employer in a Vanguard account and roll the funds over to a Roth IRA in the same Vanguard account
Basically, I'm not going to mix pre-tax, after-tax or untaxed funds in any of my accounts. Do I still need to roll over the Betterment traditional IRA to my employer's 401k to avoid additional tax complication?