qbteachmt
Level 15

"All of the Designated Roth Accounts were rolled over into one new Roth IRA."

Yay! See how things will make sense if you take it one step at a time?

There would be two 1099-R, then. And there will be one Form 5498.

"From the 2017 investment" account...", my client received a check in May, but rolled it over in June,"

For reference, it matters if that check issued is payable to your taxpayer or to their broker, and if that had been from a 401(k) account (or traditional IRA); and, always look for withholding, to be able to tell if the taxpayer rolled over the same Gross or not. A Rollover has a 60-day window. A Roth also has various 5-year rules for "qualification" as well.

"the 2010 investment was a direct roll over."

Okay, let's review that Rollovers (where the funds are available to the client) for Roth are only permitted once in 365 days. That's why Direct is the better option.

"Two distributions from the new Roth IRA were made in 2021," technically, Three. If that check was made out to the taxpayer that got Rolled..."one happened two weeks after the roll over into the Roth IRA and another in August."

Yay! So, now you know there would be 3 1099-R. One from each employer and one from the Roth IRA brokerage. But now we bump against the 5-year rule. If there was no Roth IRA prior to this, your taxpayer fails the 5-year test:

https://www.investopedia.com/articles/retirement/09/roth-401k-rollover.asp

"Are you saying that the new Roth IRA contribution amount is the total of the roll overs,"

Nothing here is a contribution, so far. What you told us about is Rollovers. These are not synonyms. A Contribution is new money for a specific tax year against the earned income for that year and the taxpayer's eligibility. So far, you have been asking about moved money and not new money.

"or do I have to track that the roll overs were part from contributions and part from earnings?"

You should read up on the various Roth 5-year rules. Your taxpayer should have the info, i but it wouldn't have mattered to the tax return, if everything had been qualified. Now, yes, there is going to be penalty and taxable amounts. The age of the taxpayer matters, the amount of time any Roth IRA has existed (not Roth 401(k)), etc. This is why taxpayers need to get better tax guidance before taking these actions.

"I have searched IRS code, but I haven't found a clear answer, and I'm unsure if this is a conversion since they are both Roth accounts?"

The answers are all there, but also use web resources; especially, I like those written towards the consumer, such as that investopedia article I linked (they have a bunch of others), and this one:

https://meetbeagle.com/resources/post/how-many-401k-rollovers-per-year

It's not Conversion, as you note, since it is from similar tax status plan/account to account. For pre-taxed funds, it would matter if the account had Basis (commingled funds). A Roth is entirely post-tax contributions and supposedly tax-free earnings, but there are multiple limitations that are in place to try to keep the taxpayer from using it as a Loan Account, for example.

You should be able to use the 1099-R worksheet, but each 1099-R is its own events.

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