I have:
1) an old employer 401K with Vanguard, with both before tax and after tax contributions (was trying for mega backdoor roth, then left company a couple months later)
2) a Roth IRA with Vanguard
I want to keep these funds with Vanguard and:
1) Roll over the old 401K to the existing Roth IRA (after tax contributions) and traditional IRA, to be newly established for the rollover of the before tax contributions. No tax impact, except possibly on the growth on the after tax contributions if they go in the Roth IRA, right?
2) At some point in the future (during ER, or when I expect a lower income tax rate) convert a portion of the traditional IRA to the Roth IRA (roth pipeline), and pay taxes on the portion that is moved.
-Can these things be done?
-When I RE I'll have my current employer's 401K, a traditional, and a Roth IRA. Can I pipeline from both the 401K and the traditional IRA?
-Am I understanding the tax implications correctly?
-Does the pro-rata rule have any role here?