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For a rollover from a 401(k), the amount in box 2a indicates the amount that is taxable unless the code in box 7 is 1, 2 or 7 and you did an indirect rollover a traditional of a portion of the distribution. For a distribution from a traditional IRA, the amount in box 2a is only a suggestion and the actual taxable amount depends on how the distribution is reported on your tax return.
From your description, it appears that your Form 1099-R for the rollover split between the traditional and Roth IRAs has code G, indicating that the amount in box 2a is the actual taxable amount. A nonzero amount in box 2a indicates a taxable rollover to a Roth IRA is being reported by Vanguard. If the 401(k) had some after-tax basis, that amount would be in box 5. Given that some amount is appearing as taxable, it seems that the amount in box 2a must be nonzero, so Vanguard believes that some amount of pre-tax funds in the 401(k) was rolled over to the Roth IRA. If the sum of the amount in boxes 5 and 2a equals the amount in box 1, that means that Vanguard believes that the entire distribution was rolled over to a Roth IRA. If that's the case, it would seem that you requested that Vanguard make a direct rollover of the entire 401(k) to a Roth IRA but somehow diverted some portion to a traditional IRA independent of what you asked Vanguard to do. That would make the reporting on the Form 1099-R not reflect what actually happened.
Note that when you have a single Form 1099-R that reports a split rollover, to accommodate reporting limitations in TurboTax you must split the code-G Form 1099-R into two for entry, one for the portion rolled over to the traditional IRA and the other for the portion rolled over to the Roth IRA. The dollar amounts in boxes 1, 2a and 5 of the split forms must total the amounts in the respective boxes of the original form.
For a rollover from a 401(k), the amount in box 2a indicates the amount that is taxable unless the code in box 7 is 1, 2 or 7 and you did an indirect rollover a traditional of a portion of the distribution. For a distribution from a traditional IRA, the amount in box 2a is only a suggestion and the actual taxable amount depends on how the distribution is reported on your tax return.
From your description, it appears that your Form 1099-R for the rollover split between the traditional and Roth IRAs has code G, indicating that the amount in box 2a is the actual taxable amount. A nonzero amount in box 2a indicates a taxable rollover to a Roth IRA is being reported by Vanguard. If the 401(k) had some after-tax basis, that amount would be in box 5. Given that some amount is appearing as taxable, it seems that the amount in box 2a must be nonzero, so Vanguard believes that some amount of pre-tax funds in the 401(k) was rolled over to the Roth IRA. If the sum of the amount in boxes 5 and 2a equals the amount in box 1, that means that Vanguard believes that the entire distribution was rolled over to a Roth IRA. If that's the case, it would seem that you requested that Vanguard make a direct rollover of the entire 401(k) to a Roth IRA but somehow diverted some portion to a traditional IRA independent of what you asked Vanguard to do. That would make the reporting on the Form 1099-R not reflect what actually happened.
Note that when you have a single Form 1099-R that reports a split rollover, to accommodate reporting limitations in TurboTax you must split the code-G Form 1099-R into two for entry, one for the portion rolled over to the traditional IRA and the other for the portion rolled over to the Roth IRA. The dollar amounts in boxes 1, 2a and 5 of the split forms must total the amounts in the respective boxes of the original form.
worked like a charm. Thanks for the response.
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