Rollover from Qual Plan to Roth - how?

[MMMBENE2000]

Hi all,

We administer several multi-employer trust funds - defined contribution plans, usually with only employer contributions (although some of the plans allow employee pre-tax contributions). We've had our first request to take a distribution from one of our DC plans and roll it over to a Roth IRA. Unfortunately, we've never dealt with this before. Can you tell me exactly what we have to do (if anything) that is different from a rollover to a traditional IRA? For instance - do we have to tax the distribution? What about the 1099r coding - is it still just a "G" or is there a special code for rollover to Roth? Anything else I'm missing? Seriously - I need A - Z instruction. Please help! Thanks so much!!

[TPAMan]

While I have seen a number of options bandied about regarding the coding of the 1099R, the 2011 1099R instructions appear to have settled on coding the transaction a "G" and including the distribution amount in the taxable box as well. Prior to Roths, the taxable amount for rollovers was always $0.00. Well...except for situations involving basis or after-tax contributions, but then, that's not your question.