Line 2 = 5500.
A 401(k) rollover does not get entered on 8606 at all unless you had a non-deducible basis in the 401(k). That is usually reported with a separate 1099-R for the 401(k) rollover but could all be on one 1099-R and would be in box 5. Then you could add that amount to line 1 on the 8606 for the year of the 401(k) rollover.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
