In October last year I left my job, and I had a Roth 401k sitting. Around February I rolled the 401k over into my IRA. As I understand it, I had to do about 30% Traditional and 70% Roth because my employer match was Traditional. That all makes sense.
I was on unemployment making 1152/week from Jan 1st-March 1st but got a new job March 1st making 162k. So, I think this puts me right at the income limits. When I got my new job, I started contributing to my Roth IRA and contributed 4,000, not realizing how close I was to income limits. So, to fix this, to my understanding, I need to:
- Roll my Traditional IRA into my new works Traditional 401k.
- Recharacterize my Roth IRA contributions as Traditional IRA contributions
- Recharacterize it back via backdoor Roth.
Is this the right course of actions? Am I missing anything? Is it worth worrying about since I am technically about 8500 away from the income limits? From what I read I need to be careful with dividends/capital gains/possible work bonus so it's better safe than sorry.
Thanks for any help!