Pre-tax pension distribution to Roth IRA

[lovesledz]

Client's wife passed away, and he was the beneficiary of her pre-tax pension. One of the options available to him was to take a $300k lump sum and roll it directly into a Roth IRA, which he did. He made an estimated payment to cover the tax due with other money available to him. The 1099-R he received lists the $300k distribution in boxes 1 & 2, indicating it is fully taxable, which of course it is. The distribution code in box 7 is 4 G, which prevents my software from carrying the taxable amount to line 16b. Should this have been coded 4 H, which would indicate a rollover to a Roth IRA? My other question is about form 8606. I assume that this transaction should be reported there, but I don't really see an appropriate line for it. All of the lines on the form refer to contributions, conversions, & distributions from traditional, SEP, or Simple IRA's. For the purpose of reporting this on form 8606, would this be reported as a conversion from a traditional, SEP, or Simple IRA?

[David1980]

Code H is used when it's a distribution from a designated Roth account. There was a recent discussion of this subject here http://forum.thetaxbook.com/showthre...ble)-questions

That was a Drake question, but presumably the same thing could happen to other software that assumes G is non-taxable. See if there's a way to override the calculation?

[lovesledz]

Thanks, I missed the previous discussion, I'll check it out. And yes, I am using Drake. I can have it included in taxable income by completing part 2 of form 8606, but I wasn't sure if I should be listing a conversion from a pension plan as a conversion from a Traditional, Sep, or Simple IRA. Is that what should be done?

[lovesledz]

Code H is used when it's a distribution from a designated Roth account. There was a recent discussion of this subject here http://forum.thetaxbook.com/showthre...ble)-questions

That was a Drake question, but presumably the same thing could happen to other software that assumes G is non-taxable. See if there's a way to override the calculation?

I just read the string with the link provided, and according to "John of PA", code H is for a rollover to a Roth IRA which is my situation. But I'm still wondering about whether or not this should be reported on form 8606. Entering this transaction in part 2 of 8606 and using a "basis before conversion" of zero, allows me to use the code G on the 1099-R, and still carry the taxable amount to line 16b. But I'm just not sure if a conversion from a pension to a Roth IRA should be reported here, and though I have searched extensively for that answer, I haven't seen that addressed anywhere. Anyone have an opinion?