1099-R Code G or H ? for Back-Door Roth Rollover

Submitted by Ron Lang on Tue, 2022-04-05 21:13

I rolled after tax 401k contributions to a Roth IRA (in-service withdrawal). Administrator provided 1099-R with Code G. The 1099-R instructions do not include this transaction. Code G does not include a Roth IRA as the destination account; and Code H has the destination as a Roth but has the starting account a Roth (Roth to Roth).

Does anyone know which code is correct for this transaction G or H? and why?

Per 1099-R instructions:

Code G: “Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.”
Code H: “Direct rollover of a designated Roth account distribution to a Roth IRA.”

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Permalink Submitted by David Mertz on Tue, 2022-04-05 22:04

Code G is correct and indeed includes the possibility of a Roth IRA being the destination. As you indicated, Code H would be for a rollover from a designated Roth account in the 401(k) to a Roth IRA.
In the instructions for Form 1099-R, see the section titled “Qualified rollover contributions as defined in section 408A(e)” which includes the following:
“For a direct rollover of an eligible rollover distribution to a Roth IRA (other than from a designated Roth account), report the total amount rolled over in box 1, the taxable amount in box 2a, and any basis recovery amount in box 5. (See the instructions for Box 5, later.) Use Code G in box 7.”