Hello and sorry for the dumb questions in advance.
Last year I decided to up my 401k contributions and I noticed that my employer offers a Roth 401k option and a split over option. So I started contributions to a Roth 401k and activated the split over option. Year ended and I have now a Roth 401k (on top of the "main" 401k that I already have) and also had after tax contributions basically in the last two months of the year.
I did some investigation and found that I should avoid keeping the after tax contributions for a long time so I called my plan administrator and asked to roll over those after tax contributions to Roth. Well they did move the money and now I can see it in the Roth 401k balance. I also looked at my plan and it says that the after tax contributions are caped at 11k which I did not exceed).
My questions are:
1) Next year, would I be taxed only on the earnings that were generated by this after tax money during those two months were the funds where there or I would be taxed according to the pro-rata rule (meaning that my small after tax contribution will be taxed entirely since I do have a large amount already in my "normal" 401k)
2) If pro-rata would not apply to me, could someone please explain when it applies? Im very confused
3) Did I do something completely wrong in this whole thing? I basically freaking out and can't share the feeling that Im messing up my retirement (20+ years away)
4) Is there anything I can do better? I just don't want to realize in years from now that I messed up and have to pay huge amounts of taxes because I didn't do things right
Thanks in advance