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Retirement tax questions
No. Actually Code G is an incorrect distribution code. In order for this not to be taxable assuming your 401K is a Roth 401K, then it should be a Code H-Direct Rollover of a designated Roth account distribution to a Roth IRA. The checkbox is correctly marked. Since you mentioned that the 401K was funded with after-tax dollars, then it is designated Roth 401K thus the rollover should not be taxable.
Ask the trustee that administers your 401K to issue a corrected 1099R listing H as the correct distribution code or else that full amount reported will be taxable. This is because with a Code G, is is reported as pretax dollars being converted to a Roth and this is a taxable event.
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‎February 28, 2022
4:06 PM