I think I've confused you. I've been known to do that to the best of them...
Your split did not work. It gave me a tax liability...albeit a much smaller one. I think it's because I've got you confused as to what I have.
First distribution check was for 66k. 30K was taxable. That leaves 36K as non taxable.
Second distribution check was for 33k...all of which is non taxable. 33k + 36K is actually 69K...but the rounding of the numbers actually gets you to the 70K. So 70K goes into a Roth IRA and the 30K goes to a traditional IRA.
As I mentioned, the only way to get the zero tax liability to show was as I mentioned:
The first one was for the taxable amount of $30,000. I put that same amount in box 2a, Total Distribution, Box 5 was 0, Code G and no Roth IRA or Roth 401K. The second was for the balance of the $100,000 on the 1099...$70,000. Nothing in box 2a, total distribution, and I changed Box 5 to $70,000. No Roth 401K, and yes to Roth IRA. That gave me the desired tax outcome. However, the only entry on the 1040 is 5a...the taxable amount for this 1099 on 5b is 0. There are no entries on 4a or 4b...which I believe to be correct because these funds did not come from a Roth. I am guessing the code used in box 7 would determine that and code G doesn't do it.
Again, this 1099 is for a 401K that both pretax and post tax contributions. The payer could have been much clearer in my opinion, but this is what I have to work with.
Thank you again dmertz for all you are doing for me.
