Q: did you receive a single 1099-R that was split between a rollover of 401(k) funds to a Traditional IRA and 401(k) Roth to a Roth IRA?
A: I received two separate 1099-R statements, one 1099R for the Roth 401k transfer to the Roth IRA, and one 1099R for the Regular 401k that was transferred erroneously to the Roth IRA.
Q: Where did the money actually go?
A: The Roth 401k went correctly to the Roth IRA account. My question is regarding the fact that my Regular 401k erroneously was deposited initially to the Roth IRA account, and therefore the 1099R for that transfer appear with a taxable amount for the total deposit.
In addition, AFTER it was deposited into the Roth account, and after having spoken to the 401k transfer agent AND my IRA brokerage account rep, the IRA brokerage account rep saw to it that the money was correctly deposited into the Regular IRA.
Q: A Roth 401(k) (designated Roth) can ONLY be rolled into a Roth IRA.
A: I thought so too, but either they changed that, or the agent doing the transfer screwed up. Their process was screwy to begin with, I actually think they have a flaw in their system and I told them that, but they claim I made the mistake in transferring my traditional 401k to my Roth IRA account. I'm not here to point fingers, I just don't want to get taxed for a big transfer all at once from a traditional 401k to a Roth IRA account that should never have occurred.
Q: Is there an amount in box 5 on the 1099-R and is box 2a the same as box 1 minus the box 5 amount?
A: Box 5 is empty, box 2a has the same value as box 1
Let me summarize my problem in fewer words, just because I think my first question was a bit verbose:
1) Wanted to transfer my Roth 401k to my Roth IRA, that worked perfectly.
2) Wanted to transfer my Traditional 401k to my Traditional IRA, but that too was transferred to my Roth IRA.
3) As the result of the erroneous transfer from Traditional 401k to Roth IRA, the 1099R for that transfer is designated at taxable on my 1099, by virtue of showing a taxable amount equal to the transferred amount (Box 1 total = Box 2a total)
4) The erroneous transfer was resolved within days by speaking to my IRA brokerage account rep, who saw to it that the erroneously transferred amount was taken out of the Roth IRA and deposited into the traditional IRA.
I just need a way to get the IRS to recognize that the transfers were ultimately done the way they were originally intended, i.e.
Traditional 401k ---> Traditional IRA, and
Roth 401k ---> Roth IRA (this one, as I've mentioned was not a problem)
