I believe the custodian did the rollover correctly. After-tax contributions to a 401k are allowed to be rolled over to a Roth IRA. So what we did was split the account into pre-tax and Roth/after-tax amounts and did 2 separate but simultaneous rollovers. The amounts in box 2a and 5 capture the portion of the account that was never taxed and therefor is eligible to rollover into a Roth with the amount in box 2a representing investment gains on the original after-tax contribution portion of the account.
I did something similar about 10 years ago and had to use another tax service in order to properly file my taxes as TT software seems unable to handle this situation. I'm hoping there is a way to force the software to correctly interpret the 1099-R. Any suggestions?
Thanks,
Tom
