All good information, but dmertz, I'm not following your arithmetic. And I'm sure it's because I'm not understanding the way the numbers are reported. I see this as a $100,000 total distribution. Of which, $30,000 is taxable and $70,000 has already had the taxes paid...so $70,000 goes to a traditional Roth. (our new financial advisor directed that.) The $30,000 goes to a traditional IRA. I really don't see where the $36,000 even comes into play. IRS Instructions state:
The entry in box 5 may include any of the following:
(a) designated Roth contributions or contributions actually
made on behalf of the employee over the years under the
plan that were required to be included in the income of the
employee when contributed (after-tax contributions), (b)
contributions made by the employer but considered to have
been contributed by the employee under section 72(f),
If I read that correctly, those contributions have been paid by us (after tax payroll deduction) or the employer (included on W-2's) and have been taxed...so therefore, are part of the $70,000 non-taxable portion of the rollover. In fact, when the company sent the check to our new financial advisor (direct rollover) , they sent one check and paperwork designating exactly how much was what...like the 1099 states.
Looking at your numbers above, why would the $30,000 go to the Roth? That is taxable and would generate a large tax bill. So therefore, the $30,000 went to the traditional IRA. Everything else went to the Roth because it was not taxable. Again, I really don't see what the $36,000 has to do with this.
Any help is greatly appreciated.
