Personal Finance (Not Investing) • Made a terrible mistake in contributing to megabackdoor-Roth, $7.3k went to Roth instead, messed taxes

but in the thread you quoted, Alan S says the opposite:

With respect to the original post, the excess resulted from a combination of pre tax and Roth deferrals. In that case, the tax code indicates that the excess amount is assigned first to the Roth contributions. Therefore, as long as the pre tax deferral itself did not exceed the 402g limit, a tax program should not add anything to wages because the designated Roth contribution has already been included as wages.

was there a change?

btw in the event the excess is considered the Roth, *how* does that get taxed on withdrawal? Do Roth plans have a way of tracking pre-tax basis? And even if they do, it seems like a big loophole where someone could change jobs, max Roth 401k at both, and just not tell the employers.

Statistics: Posted by bogle005 — Thu Oct 17, 2024 10:02 pm — Replies 60 — Views 2333