401K rollover to Roth and Traditional IRA

[esarnc]

Hi @dmertz, need some clarification on the break up.

1. I am breaking up the 1099-R I received from the custodian into two

2. On the first one,  for box 1 (Gross Distribution) and box 5 (Employee Contribution),  I put the box 5 amount from the original 1099-R

3. On the second one, for box 1 (Gross Distribution) I put the earnings amount calculated from the original 1099-R. Should this amount be placed on box 5 as well (Employee Contribution) or box 6 (Net Unrealized Appreciation)?

4. For the second 1099-R, what is the code I should use in box 7? Same as the 1st 1099-R (D-Direct rollover and rollover contribution?)

Appreciate your feedback.

[dmertz]

@esarnc , I assume that the amount form box 5 of the original Form 1099-R is the amount rolled over to the Roth IRA.  For the first Form 1099-R, that's correct.  You'll answer No when asked if you rolled it over to a Roth 401(k) or Roth 403(b), then answer Yes when asked if this was rolled over to a Roth IRA.

For the second Form 1099-R, Everything should be the same as the original except that box 1 should contain the difference between the amounts in boxes 1 and 5 and box 5 should contain a zero.  Nothing goes in box 6 or any of the other dollar-amount boxes.  For this one you'll answer No to both question that ask if it was rolled over to any kind of Roth account.

The code for direct rollover of a 401(k) is G, not D.  (Code D would indicate a distribution that is not eligible for rollover.)