Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
UncleLeo
Posts: 40
Joined: Wed Jul 12, 2017 12:43 am

Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by UncleLeo » Sun Feb 11, 2018 3:39 am

I've executed the mega backdoor at the end of 2017 and I have the following lines under the transaction history page of the Roth IRA (Vanguard):
12/28/2017 -- VANGUARD FEDERAL MONEY MARKET FUND (Settlement Fund) $X+Y
12/27/2017 -- CASH Rollover (incoming) -- -- -- $Y
12/27/2017 -- CASH Rollover (incoming) -- -- -- $X

I did receive a 1099-R for the regular backdoor a few weeks ago, but not for this mega backdoor.

Did folks start receiving 1099-R for 2017 mega backdoors? According to Vanguard 1099-R should have been ready in late Jan.
Is it possible they consider this as a 2018 rollover?

hulburt1
Posts: 306
Joined: Tue Jul 15, 2014 9:17 pm

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by hulburt1 » Sun Feb 11, 2018 9:42 am

you need form 8606 vanguard does no do. I'm not the sharpest tool in the shed but I was able to feel it out. You can get on the internet.. Look at part 2 is what needs to be filled out.

cherijoh
Posts: 4675
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by cherijoh » Sun Feb 11, 2018 9:49 am

UncleLeo wrote:
Sun Feb 11, 2018 3:39 am
I've executed the mega backdoor at the end of 2017 and I have the following lines under the transaction history page of the Roth IRA (Vanguard):
12/28/2017 -- VANGUARD FEDERAL MONEY MARKET FUND (Settlement Fund) $X+Y
12/27/2017 -- CASH Rollover (incoming) -- -- -- $Y
12/27/2017 -- CASH Rollover (incoming) -- -- -- $X

I did receive a 1099-R for the regular backdoor a few weeks ago, but not for this mega backdoor.

Did folks start receiving 1099-R for 2017 mega backdoors? According to Vanguard 1099-R should have been ready in late Jan.
Is it possible they consider this as a 2018 rollover?
1099's come from originating source NOT the receiving source. Is Vanguard the custodian for your 401k? If not, then you need to contact them not VG. And if VG is the custodian I think you would need to contact a different group not the retail customer service for individual accounts.

User avatar
Earl Lemongrab
Posts: 4368
Joined: Tue Jun 10, 2014 1:14 am

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by Earl Lemongrab » Sun Feb 11, 2018 5:50 pm

hulburt1 wrote:
Sun Feb 11, 2018 9:42 am
you need form 8606 vanguard does no do. I'm not the sharpest tool in the shed but I was able to feel it out. You can get on the internet.. Look at part 2 is what needs to be filled out.
If the rollover from the 401(k) was directly to a Roth IRA (as it appears) then 8606 is not used.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

User avatar
Earl Lemongrab
Posts: 4368
Joined: Tue Jun 10, 2014 1:14 am

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by Earl Lemongrab » Sun Feb 11, 2018 5:51 pm

If the rollover was completed before the end of 2017, there's no way the 401(k) could "consider" it to be for 2018. It's still early in the process. If you're anxious, contact your adminstrator.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Alan S.
Posts: 7511
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by Alan S. » Sun Feb 11, 2018 7:49 pm

That 1099R should have been mailed to you no later than 1/31. So if you do not have it by now, there is a problem. Call the plan administrator.

User avatar
UncleLeo
Posts: 40
Joined: Wed Jul 12, 2017 12:43 am

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by UncleLeo » Mon Feb 12, 2018 1:09 am

cherijoh wrote:
Sun Feb 11, 2018 9:49 am
UncleLeo wrote:
Sun Feb 11, 2018 3:39 am
I've executed the mega backdoor at the end of 2017 and I have the following lines under the transaction history page of the Roth IRA (Vanguard):
12/28/2017 -- VANGUARD FEDERAL MONEY MARKET FUND (Settlement Fund) $X+Y
12/27/2017 -- CASH Rollover (incoming) -- -- -- $Y
12/27/2017 -- CASH Rollover (incoming) -- -- -- $X

I did receive a 1099-R for the regular backdoor a few weeks ago, but not for this mega backdoor.

Did folks start receiving 1099-R for 2017 mega backdoors? According to Vanguard 1099-R should have been ready in late Jan.
Is it possible they consider this as a 2018 rollover?
1099's come from originating source NOT the receiving source. Is Vanguard the custodian for your 401k? If not, then you need to contact them not VG. And if VG is the custodian I think you would need to contact a different group not the retail customer service for individual accounts.
Thanks! this was super helpful.
Looks like the "tax center" for my Vanguard 401K is different than the "tax center" for all my other Vanguard accounts. I found the 1099-R after some digging in the 401K section.
I followed the finance buff's guide for reporting mega backdoor with TT, and everything seems correct, except I have box 14 (State distribution) being not empty and equals to the taxable amount (box 2a).
My state is CA, Just wanted to make sure this is right (?)

Thanks again!

itworks
Posts: 97
Joined: Sat Jan 15, 2011 3:20 pm

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by itworks » Tue Feb 13, 2018 12:39 am

My 401K is administered by Fidelity, and I actually got lost just as you, as Fidelity similarly tucks the 1099-R form under the 401K section.

Not sure about box 14. My form, generated by Fidelity, shows blank in that box. I assume it does not matter, as you have to pay income tax to both Federal and State, and the amount shows in box 2a is the income.

User avatar
UncleLeo
Posts: 40
Joined: Wed Jul 12, 2017 12:43 am

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

Post by UncleLeo » Wed Feb 14, 2018 3:00 am

itworks wrote:
Tue Feb 13, 2018 12:39 am
My 401K is administered by Fidelity, and I actually got lost just as you, as Fidelity similarly tucks the 1099-R form under the 401K section.

Not sure about box 14. My form, generated by Fidelity, shows blank in that box. I assume it does not matter, as you have to pay income tax to both Federal and State, and the amount shows in box 2a is the income.
Awesome, Thanks! :sharebeer

Post Reply