Thank you for the links, much easier than IRS code to read. The program will calculate the taxable and nontaxable income if you enter through the complete worksheet, which I thought I had, but I had not. Thank you for mentioning that also. Turns out that the entire roll over amounts become the basis for the new Roth IRA. The distribution was not taxable because it was less than the employee contributions into their Roth 401(k). The remaining contributions and earnings become the new Roth IRA basis going forward. The earnings that was rolled over into the new Roth IRA from the Roth 401(k) are included in their gross income for 2021, which makes sense. I had never worked through a Roth roll over like this before, so the research was time consuming, but worth the effort.