Reporting Rollovers from Qual Plans to Roth IRAs

[Guest IraSue]

My understanding is that starting in 2008, a participant may rollover (and simultaneously convert) funds, other than a Designated Roth Account, from a qualified employer plan to a Roth IRA. This is addressed in Pub 590 in a rather blasé fashion, imo. I have also read the instructions for 2008 Forms 1099-R and 5498 but cannot find specific instructions on how these rollover-conversions are to be reported. Maybe I'm overcomplicating it, but that's a hazard of this job...

Does anyone know if there will be a special distribution code for Form 1099-R (other than G)? When the funds are deposited, the 5498 instructions indicate to report them as rollovers, not conversions. It seems I'm missing something. How will the IRS know the funds are taxable?

I know we have lots of time for this, but I'm putting together a chart for internal use and need to address this.

Any insight or direction is appreciated.

Thank you!

[eeyore]

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.