Thank you for providing a clear instruction on splitting the 1099-R. I have since contacted the 401 financial institution and they agreed to provide two 1099-R. One for the before tax contribution and the other one for the after tax contribution plus its earnings.
I am not clear on how to handle the earned income. I discovered the rollover mistake immediately when I worked with the 401K financial institution on the phone but the representative said it was wired, so they cannot correct it. I also had my brokage representative on the phone, so I asked my brokage to reroute it to my regular IRA and they did it as soon as they received the money. It did not stay in my ROTH account, so it should be an non-taxable event. You indicated that this cannot be undone. If I pay tax on the earned income this year, then I will have an already taxed money in a regular IRA and pay tax again when I take it out. Please advise. Thank you.
