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So this year, due in good part to a large capital gain, my wife and I will likely be unable to contribute direction to Roth IRAs.

I know there's the option to contribute to a non-deductible IRA and do a conversion, but I have a problem with that. That's beucase I have a fairly large Rollover (Trad) IRA (originally from an old employer's 401K), which means that most of my conversion would actually be taxable because of the total Rollover IRA + Non-Deduct IRA balance.

However, I've been considering rolling my Rollover 401K back into my existing employer's 401K. I was consider this anyway as part of simplifying/reducing my accounts, and my current 401K has some nice low-cost index options.

At this point my question might be obvious, but... if I roll my Rollover IRA into my 401K, could I then - in the same calendar year - contribute to a Non-deductible IRA and convert it tax free to a Roth IRA? Or would I have to wait until the following calendar year?

I believe - looking at form 8606, that the answer would be yes - but before I go forward with something like that, I wanted to see if anyone on here had a different opinion or any words of warning.

P.S. I don't think it will make a difference, but my Rollover IRA to 401K conversion looks like it would have to happen via check & not direct (my current 401k custodian looks like they don't support direct trustee-to-trustee transfers).
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