@DanaB27 , this seems to be a Form 1099-R that reports a distribution of unrecoverable basis in the Roth 401(k) because the value of the account rolled over to the Roth IRA (which was likely reported on a separate code H Form 1099-R) was below the contribution basis in the Roth 401(k) at the time of the rollover.
Prior to 2018 this $7,000 could have been claimed as a miscellaneous deduction subject to the 2%-of-AGI floor, but such deductions have been suspended for tax years 218 through 2025. One might consider adding this $7,000 to Roth IRA contribution basis, but I don't know if that is permitted. If that was permissible, one would think that this $7,000 would have been included along with the rest in box 5 of the code-H Form 1099-R, but it's also possible that it is reported separately to allow the individual to treat it either way (ignoring the fact that the deduction has been suspended).
