Client under age 59 1/2 rolled over his Lowe's 401K to an IRA. Direct transfer. The 1099-R in box 7 is code 1.
The 1099-R has $41,000 in box 1 and has $20,000 in box 2 as taxable AND in box 6 Net Unrealized appreciation in employer's securities is $21,000.

He rolled it all over to an IRA but this is code 1 and they will not change it to code G.

Now what?