I did a direct in plan conversion on my 401k plan from pre-tax to Roth sub account. (IRR). This is a taxable event. My 1099-R says the amount in box 1 and the same amount in box 2a as a taxable amount. This is correct.
This year, in box 7 the only code is G which is the code for a direct rollover.
Last year with a different record keeper I got one with a code BG.
The year before that a 7G for the same transactions. The IRS instruction (this year's) says G may not be used with code 7. (this record keeper made other errors resulting in several corrected 1099Rs for the same transaction).
The IRS instruction says G for direct rollovers with In Plan Conversions when non Roth assets are converted in plan. The B code is to be used for distributions from a designated Roth account unless the distribution is to a Roth IRA. In this case it was a distribution from the pre-tax 401k sub account to the Roth 401k sub account and not to a Roth IRA.
I think that since these transactions are all the same 401k plan assets being transferred from pre-tax to Roth, the correct code should be G and only G in each of the three years. Is this correct and should I ask the old record keeper to fix the earlier problems to avoid down the road issues?
