Fixing a Mistaken Traditional IRA to 401(k) Rollover After Roth Recharacterization & Non-Deductible IRA Contribution

I need help correcting a rollover mistake that involved both after-tax and pre-tax IRA funds. My original goal was to complete a Backdoor Roth conversion, but I mistakenly rolled everything into my workplace 401(k) (Fidelity) instead.

Breakdown of What Happened:

1. I originally contributed to a Roth IRA, but my income was too high, so I recharacterized it into a Traditional IRA.
2. I then made a non-deductible Traditional IRA contribution into my Rollover IRA.
3. My Rollover IRA contained both pre-tax and after-tax dollars before I took any further action.
4. Instead of doing a Roth conversion, I mistakenly rolled over the entire Rollover IRA (both pre-tax and after-tax funds) into my workplace 401(k) (Fidelity).
5. Now, my 401(k) contains commingled pre-tax and after-tax dollars from this rollover.
6. Fidelity says they cannot reverse the rollover, but they do allow rollovers from my 401(k) back to a Traditional IRA.

What I Want to Do:

• Properly complete the Backdoor Roth and ensure the after-tax money gets converted tax-free without triggering double taxation.
• Keep the pre-tax money in my 401(k) (or move it back if necessary) to avoid the pro-rata rule when converting to Roth.

Key Questions:

1. If I roll money back from my 401(k) to an IRA, how do I separate pre-tax vs. after-tax funds?
2. Can I then convert only the after-tax portion to a Roth IRA tax-free?
3. Can I roll the pre-tax portion back into my 401(k) after the Roth conversion to avoid pro-rata issues?
4. How do I correctly track the IRA basis on Form 8606 given these transactions?
5. Has anyone successfully navigated a similar situation, and what steps did you take?

Any guidance would be greatly appreciated! Thanks in advance!

submitted by /u/amrabujafar
[link] [comments]