Yes, the $500 that was rolled into a Roth IRA would be taxable income.
A traditional 401k implies that the money that was contributed is pre-tax money. When pre-tax money is rolled into a Roth IRA, then the amount rolled over becomes taxable since Roth accounts are funded with after-tax money. You do not need to request a corrected 1099-R.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
