"That gave me the desired tax outcome."
Unfortunately, that's the wrong out come. The correct outcome is $30,000 on line 5b because $30,000 of the $66,000 rolled over to the Roth IRA is taxable income. I described the split necessary to get the correct outcome.
(I'm not sure why your originally indicated that $70,000 was rolled over to the Roth IRA when the Form 1099-R and the check amounts indicate that only $66,000 was rolled over to the Roth IRA. Perhaps you were just overly rounding the numbers.)
