So. . I am confused on the use and benefit of backdoor Roth. I was looking at my 401K statement....
A
Backdoor Roth IRA does not involve a 401k - only non-deductible tIRA contributions and then conversion to Roth IRA.
Posting to follow.... Am I correct that this would avoid any taxes in the year everything is rolled over?
Yes, if your 401k plan allows.
I've got about 2500 in earnings on my After Tax 401k (contributed around 15k). I'm delaying rolling it over because I assumed the 2500 earnings would be taxable income and then knock down how much I'm able to deduct for a traditional IRA (I'm in the phaseout range and likely won't be next year). I may have to call the company because I did not see these options online. My only choices were rollover everything into Roth IRA and pay tax. Or only roll over the earnings.
This (and the OP's situation) is a
Mega Backdoor Roth IRA. Much depends on exactly what the 401k plan allows. See the Summary Plan Description if you don't get good help from the company benefits people.
I think you get this, but for other readers: rollovers have no effect on the IRS limits for IRA contributions. You could roll over $1MM and still be able to make a $5500 contribution. Whether that $5500 is deductible, however, depends on income.