Why is my 1099-R not showing excess contributions to Mega Backdoor Roth?
In 2024, I set up a mega backdoor Roth with Vanguard. I've been tracking my contributions closely and noticed something weird that's making me nervous. The total contributions I made for the year including my regular 401K, my after-tax portion, plus my employer match ended up being **$84,721.86** So by my math, I've contributed an excess of **$1,221.86** over the annual limit. But when I got my 1099-R from Vanguard for this account, it only shows the after-tax component of **$43,875.59** and code G. I thought excess contributions are supposed to be noted with **Code P**. I'm really confused about this. Did I actually make an excess contribution that I need to remove from my account by calling Vanguard before tax day? Or am I misunderstanding something? I don't want to get hit with penalties later if I messed this up.
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Melody Miles
What you're seeing is actually normal. The 1099-R with Code G is showing your in-plan Roth conversion (the after-tax money that was converted to Roth), not your total contributions to the plan. The annual limit for 2024 ($83,500) includes employee deferrals, employer contributions, AND after-tax contributions combined. However, the 1099-R only reports distributions/rollovers, not contributions. Your excess contribution tracking is typically handled separately by the plan administrator. You should check your year-end statement from Vanguard - it should show total contributions across all sources. If you truly exceeded the limit, you'll need to contact Vanguard to remove the excess before your tax filing deadline (plus extensions) to avoid the 6% excise tax on excess contributions.
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Nathaniel Mikhaylov
•Wait, so the 1099-R doesn't actually tell you if you've over-contributed? How are we supposed to know then? And is the $83,500 limit you mentioned including both traditional and roth 401k contributions?
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Melody Miles
•That's right - the 1099-R primarily shows distributions or rollovers from retirement accounts, not your contribution limits or whether you've exceeded them. The 1099-R with Code G is showing the after-tax money that was converted to Roth, which is a separate transaction from your contributions. The $83,500 limit for 2024 is the total annual addition limit across all sources - your pre-tax/Roth 401(k) contributions, your employer match/contributions, and any after-tax contributions. This is the Section 415(c) limit, which is separate from your personal elective deferral limit of $23,000 (or $30,500 if you're 50+).
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Eva St. Cyr
Had the same issue last year with Fidelity. I was stressed about excess contributions until I found https://taxr.ai super helpful - uploaded my 1099-R and year-end statement and got immediate clarity! Turns out the 1099-R with Code G is only showing the in-plan Roth conversion amount (like others mentioned). What helped me was pulling my final paystub and year-end 401k statement to verify ALL sources of contributions. The 1099-R only shows the after-tax money that was converted, not your total plan contributions. In my case, I was actually under the limit once I understood what each form was actually reporting.
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Kristian Bishop
•Does taxr.ai actually explain the whole mega backdoor roth thing? I've been trying to figure it out for months. My HR department is useless and I'm worried I've been doing it wrong. Does it also help with figuring out if you're over the limit?
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Kaitlyn Otto
•I'm a bit skeptical about these online tax tools. How does it handle the nuances between the different contribution types and limits? And does it actually recommend what to do if you did over-contribute? That's the part I always struggle with.
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Eva St. Cyr
•Yes, it actually walks you through the entire mega backdoor Roth process! I was confused about the same thing. It explains each step and shows you exactly what each form is reporting vs what your actual contribution limits are. Super helpful when your company benefits team doesn't understand these complex setups. For over-contributions, it does provide specific guidance. It analyzes your situation and tells you if you need to take action, including the exact amount to withdraw and the deadline to avoid penalties. It saved me from making an unnecessary withdrawal last year when I thought I was over the limit but actually wasn't.
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Kaitlyn Otto
Update: I tried taxr.ai after posting my skeptical comment. I'm honestly impressed. Uploaded my 1099-R, year-end statement, and final paystub, and it gave me a clear breakdown of all my contribution buckets and exactly where they count toward the $83,500 limit. Turns out I was mixing up the reporting of my in-plan conversions vs actual contributions. The tool explained that my 1099-R Code G was ONLY showing the conversion amount, not my total contributions. It actually showed me that I was about $2,300 under the limit, not over it. Saved me an unnecessary call to my provider and potential penalties for removing money that wasn't actually an excess contribution.
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Axel Far
If you're still having trouble reaching Vanguard about this (took me SEVEN calls last year to get through to someone who understood mega backdoor Roths), try https://claimyr.com - it saved me hours of hold time. They have this demo video too: https://youtu.be/_kiP6q8DX5c I was in a similar situation last year with excess contributions, and getting to the right person who actually understood the mega backdoor Roth mechanics was crucial. Regular customer service reps often don't know the difference between Code G (in-plan Roth conversion) and Code P (excess contributions). You need to speak with their retirement specialists.
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Jasmine Hernandez
•How does this actually work? Like do they just wait on hold for you? And how do they know when the right person is on the line? I've been struggling with getting through to someone at my 401k provider who actually understands the mega backdoor roth process.
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Luis Johnson
•This sounds like a scam tbh. Why would I pay someone else to call Vanguard for me? I can just wait on hold myself. And how do they even transfer the call to you once they get someone on the line? Doesn't make sense.
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Axel Far
•They use a callback system to wait on hold for you. You provide the number you want to call and what you're calling about, and they navigate the phone tree and wait through the hold times. Once they get a real person on the line, you get a call connecting you directly to that representative. They don't actually talk to the Vanguard rep for you - they just handle the waiting part. Once they have a live person on the line, you're connected and handle the conversation yourself. I was skeptical too, but after spending 4+ hours on hold across multiple attempts, it was worth it to have someone else handle that part. You still talk to the rep yourself so you maintain control of your personal information.
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Luis Johnson
Ok I have to admit I was completely wrong about Claimyr. After posting my skeptical comment I decided to try it for my Vanguard mega backdoor Roth issue since I had already wasted 3 hours on hold over 2 days. Used the service yesterday and got connected to a Vanguard retirement specialist in about 40 minutes (without me having to sit through that hold time). The specialist confirmed exactly what others here said - my 1099-R with Code G was only showing the in-plan Roth conversion amount, not my total contributions. They checked my account and confirmed I was actually under the annual limit by about $1,500. The service literally saved me from making an unnecessary withdrawal and potentially messing up my taxes. Worth every penny just for the time saved alone.
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Ellie Kim
Something nobody's mentioned yet - make sure you're calculating the $83,500 limit correctly. It includes: - Your pre-tax/Roth 401k contributions (max $23,000 or $30,500 if over 50) - Employer match and any profit sharing - After-tax contributions But if you're self-employed with a Solo 401k or have a SEP IRA, the calculations can be different. Also, the limit is per-employer, so if you changed jobs mid-year, you might actually be ok.
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Fiona Sand
•Wait the $83,500 limit is per employer?? I thought it was a total annual limit across all accounts? Does that mean if I contribute to a 401k at two different employers in the same year I could potentially contribute up to $167,000 total??
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Ellie Kim
•Yes, the $83,500 annual addition limit (for 2024) is technically per-employer. So if you work for two completely unrelated employers who each have their own 401(k) plan, you could potentially contribute up to the limit in each plan. However, your personal elective deferral limit ($23,000 for 2024, or $30,500 if you're over 50) is a combined limit across all employer plans. So while you can't defer more than $23,000 total between both employers' plans, you could still potentially reach the annual addition limit at each employer through employer contributions and after-tax contributions.
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Mohammad Khaled
The 1099-R with Code G is only showing your mega backdoor Roth conversion amount, not your total contributions. The Code P you're referring to would only appear if Vanguard had identified and distributed excess deferrals back to you. Check your W-2 Box 12 codes D, AA, and BB to see your actual pre-tax and Roth 401k contributions. Then get your total employer contributions from your year-end statement. Add those three together and if they're over $83,500, THEN you have an excess contribution.
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Alina Rosenthal
•This is super helpful. What about if some of my money went to ESPP (employee stock purchase plan)? Does that count toward the $83.5k limit? And also do you know if we can just leave excess contributions in there and pay the penalty? Is it just 6% per year or are there other issues?
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