Thanks for your response. I don't think I was clear, though. The entire indirect rollover from the 401(k) is a taxable distribution, unless I do the 60 day rollover, which is how I wanted to handle it. Even though 20% was withheld for taxes, I need to fully put the distribution plus the taxes that were already withheld back into my IRA, otherwise the 20% withheld would need to be reported as taxable income. My point was, since the taxes were withheld, that portion that I am putting back in the IRA was already taxed. Wouldn't this need to identified in the 8606 at some point?
