You are very correct that this was handled oddly. When I filled out the paperwork for the rollover, I chose not to withhold federal tax but they still withheld 20%. I contacted them after and they said they made a mistake. I could submit a formal complain and they could try to get the $1600 back from IRS but they said there was no guarantee as it is easy to "send money to IRS" but it is difficult to "get the money back". Then I was like fine and I did not want to go through the hassle to change it.
They used the correct code "G" for the 1099-R for the $6400. However, they used code "2" for the 1099-R for the $1600. I think they should use code "1" for the $1600 but they said the "$1600" is not subject to the early withdraw penalty. Should I just put code "1" when I put the 1099-R information in TurboTax for the $1600 even it is code "2" on the form I have?
@dmertz
