dmertz
Level 15

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Perhaps the movement of funds to the Roth IRA was accomplished in two steps, first a rollover from the employer plan to a traditional IRA followed by a Roth conversion form the traditional IRA.

 

If you received a Form 1099-R with code G in box 7 and a taxable amount in box 2a, this distribution was supposed to be deposited directly into the Roth IRA and this would be the only Form 1099-R that you should have received for this movement of funds.  However, if the funds were instead deposited into a traditional IRA instead of being directly deposited into the Roth IRA and then you subsequently did the Roth conversion, you would receive a From 1099-R with code 2 or code 7 for the taxable Roth conversion.  If this is what happened, the code-G Form 1099-R does not reflect the nontaxable rollover to the traditional IRA that actually occurred.