Proper dist code

[doombuggy]

Participant terminated last month and has submitted his paperwork for distribution. The plan is daily valued with Nationwide, and we release the distributions online.

this guy has Roth deferrals and safe harbor non-elective. He is requesting that both be rolled into a Roth IRA. Tag has told me that this can be done, so I just went on Nationwide's site and processed the Roth portion of the distribution. Here are my questions:

The distribution is automatically coming up with a code of BG. Is that because the Roth has only been in there since 2008?

What code should the SHNEC portion of the distribution be? There are so many darn codes now...He'll need to pay some kind of taxes on that money at some point, probably sooner rather than later. Can you tell this is my first Roth distribution?

[ACox]

From my understanding of the regulations, the 1099-R code would be a G for both distributions. For the SHNEC you would enter the gross distribution amount in box 1 as well as the taxible amount in box 2. Normally for a direct rollover the taxable amount would be zero, but since it is going to a ROTH IRA it would be the gross amount of the distribution.