"However, due to his kind generosity and the fact that I am struggling, he forgave the loan and paid the full $80,000.00"
The $80,000 (which you say you received under an "employment contract") sure sounds like compensation, which as such would be subject to FICA, FUTA, and income tax withholding, and for which you should be furnished a W-2 at year's end.
And as @Mike9241 pointed out, any "gift" included in that $80,000 would by law be considered part of the compensation.
Finally, a "rollover" can only occur from funds held in an employer-sponsored retirement plan, such as a 401K.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
