Hello - in October 2022 I opened an IRA traditional with $2000 by mistake (I meant to open an IRA Roth). Later in December I asked the financial institution where I opened it to transfer or convert the $2000 into an IRA Roth. The financial institution opened an IRA Roth and transferred the funds from the IRA Traditional and closed it. I received a Form 1099R which shows the $2000 in Box 1 and Box 2a. It also shows an "X" in Box 2b "Taxable amount not determined". And it shows Code 7 "Normal distribution" in Box 7. It looks to me that I will be responsible for paying taxes on the $2000 even though I never withdrew the funds, it was just a transfer from the IRA Traditional to the IRA Roth. I contacted the financial institution and they said the Form 1099R I received is correct, that they need to report the $2000 as a normal distribution. They also mentioned that I might need to file Form 8606. Do I need to file Form 8606? Should I expect the financial institution to send me a corrected Form 1099R? How should I enter the information on Form 1099R in Turbo-Tax? Any feedback or guidance will be greatly appreciated it. Thanks!!
