Roth 401k to Roth IRA Rollover

[taxquestion515]

I left my (age 28) job in August to pursue education. At that time, I rolled my Roth 401k contributions into my existing Roth IRA and the employer contributions into a Traditional IRA -- then rolled the Traditional IRA into the existing Roth IRA (closing the Traditional IRA prior to vestment). I've received two 1099-R's: one for the initial Roth 401k --> Roth IRA transfer, and a second for the initial Roth 401k --> Traditional IRA transfer. 

No action has been taken since the Traditional IRA was closed and all funds are in the Roth IRA account with two 1099-R's received. 

Is there any action I should take prior to submitting taxes this year? The total sum transferred across all accounts was only about $1500. Should I expect a large tax penalty?

[DianeW777]

All the events took place in 2021. If you used direct or trustee-to-trustee rollover (The money did not go through you) then the Forms 1099-R will be coded correctly in box 7.   If you did not take an early withdrawal, very likely there is no early withdrawal penalty. When you moved money from Traditional IRA to Roth IRA, it is considered a conversion and you will pay tax on this amount.

Based on your end result, and if none of the money was retained by you (not rolled into the Roth IRA) some of the money might be taxed which would be earnings.  However if all of the money when from one Roth account to another, then none of it should be taxed.  The code will identify that and TurboTax will rely on the code.