The 1099-R for the $50K is the rollover so you must indicate that you rolled over this one. The second 1099-R is the additional distribution from your traditional IRA that was made to cover the income taxes on the $50,000. This one should not be indicated as rolled over. Because this is a regular distribution , you may (depending on if you have any traditional IRA basis) owe income taxes on this amount only, and if you do not qualify there may be an early withdrawal penalty.
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