Rolled over Roth 401(k) to Roth IRA, confused about 1099-R code 1B

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CrimsonRaider2357
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Joined: Wed Apr 27, 2022 7:21 pm

Rolled over Roth 401(k) to Roth IRA, confused about 1099-R code 1B

Post by CrimsonRaider2357 »

Hi everyone,

I just completed a rollover of my Roth 401(k) (Fidelity) to my Roth IRA (Schwab). All of my contributions were Roth, but there was also an employer match (which is pre-tax). I had Fidelity perform a Roth conversion on the match before initiating the rollover (to prevent dealing with a Rollover/Traditional IRA and conversion).

When I login to Fidelity, I can see that I will be receiving three 1099-R forms with different codes:
-Code H, for the total of my Roth contributions
-Code G, for the total of my employer match (Roth conversion)
-Code 1B, for about $200

The Code H and Code G add up to the total amount I received from Fidelity for the rollover. Code 1B is "extra." Looking at my rollover statement, the amount corresponds to the "Unrecovered Roth Basis" of my 401(k). I believe this means I lost money on my Roth investments. When I look up 1099-R instructions, Code 1B refers to an early distribution from a designed Roth account. I'm a little confused as to what this means, since everything was rolled over. I assume it has something to do with the cost basis in my Roth IRA, but I'm not sure. I also assume this is not a taxable event, but again, I'm not sure.

Thank you!
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