In 2023, my daughter requested the custodian of her retirement accounts (401k and Roth 401k) from her summer internship in 2022 to close her accounts and send her 2 direct rollover checks with the balances. Without realizing the difference in the 2 accounts (one funded with pre-tax money, the other post-tax), she deposited both checks into her brokerage's Roth IRA account. At year end 2023, we received 2 1099Rs from the custodian firm, one with a G in box 7, the other with an H. Both with $0 taxable amount in box 2a. We realized she had accidentally converted her 401k into her Roth IRA. Luckily she was eligible to do a Roth conversion in 2023 since she only worked in the summer. She contacted the custodian firm to try to obtain a corrected 1099R that shows the Roth conversion, but they told her that they would not be able to do it because (1) the conversion did not happen at their firm, and (2) they did not support conversions.
How should we proceed to finish her tax return? Should the brokerage firm with her Roth IRA issue the 1099 with the conversion? If not, can she furnish the information on her tax return to show the conversion? Would appreciate any guidance.
