SECURE Act 2.0 offered employees the opportunity to receive Roth-style employer contributions if their employer permits them. While employee Roth 401k contributions are subject to normal tax withholdings, the IRS treats employer Roth contributions as in-plan Roth rollovers. This means that individuals receiving employer Roth contributions will receive a Form 1099R and be responsible for paying taxes on the employer Roth contribution. Keep reading for more information how to handle this tax surprise.
https://www.morningstar.com/personal-finance/roth-employer-contributions-come-with-1099-r-surprise