Since 2010, I've contributed after-tax dollars to my tIRA in the max allowed given my income has been too high to make deductable tIRA contributions. These contributions have totaled $37k through 2016.
Recently, I rolled a $401k from a previous employer into the tIRA. This was a large amount and my tiRA balance is now sitting at $300k and my Roth balance is ~$47k. If I'm interpreting the pro-rata rule correctly, on any distribution from my tIRA to my Roth, ~76% this would be taxable (~$84k of after-tax dollars versus ~$347k in total IRA assets).
If 75% of any money I move from my traditional to Roth is taxable, then I will hold off on doing any Roth ladders until I'm done working and don't have much income.
I'm checking with my present 401k administrator to see if the mega backdoor is an option. Maybe I can go that route to get money into the Roth in a tax efficient manner.
Just wanted to make sure I'm interpreting everything correctly and seeing if I have any other options.