eeyore

The answers to your questions depend on the laws in the state in question, and on the terms of the plans in question. There is no single approach being used by all governmental plans.

Contingencies certainly has articles on retirement plans from time to time.

I believe what you suggest at first ($104,462) is correct. This is the same approach to the issue that they've always taken.

They'll know it's taxable because you have to put the amount in Box 1 and Box 2 for a Roth IRA Rollover, per the 2008 instructions. Code G will generally be your only letter code.