The code G has the program believing it is all a rollover and not taxed. The money going into the ROTH is taxable and will need to be separated.
First, remember, your 1040 shows the total distribution and separately the taxable distribution.
You will need to separate your one 1099-R into 2 forms.
- Create one for the rollover IRA, code G and distribution box 1 is $8.000, box 2a is 0.
- Create one for the ROTH, box 1 and box 2a are $2,000. Box 7 is still a code G
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