Thank you very much for your reply to my post.
The Employee Savings Plan my brother participated in was administered by a 3rd party - an investment company contracted to administer the plan. The Savings Plan was traditional (a non-Roth 401-k), and the IRA account he opened at another investment company was a traditional IRA. There wasn't a Roth account involved. He decided to take some money out of the Employee Savings Plan, and so he opened a traditional IRA account and did the rollover. The only money placed in this IRA account was the money that came from this rollover.
If I understood you correctly, if there was only one transaction into or our of the IRA account (that one transaction being that one-time rollover), there would never have been an 8606, and the only record of the after-tax basis would have been the 1099-R generated in the year that the rollover occurred. Did I understand that correctly?
