Thank you for the reply! The solution of splitting the 1099-R into 2 entries had crossed my mind and would certainly achieve the correct final numbers, but wouldn't this be a red flag for an IRS audit if the 1099-R isn't entered as issued? Is TT forcing me to report a 1099-R differently than issued? Would it be better to ask Fidelity if they would issue 2 corrected 1099-Rs with the amounts separated (but I'm doubting they would do this simply because TT can't process the separation correctly)? I'm thinking that this is a bug in the TT software if it isn't allowing the amounts to be separated (as with distribution code 7 where there is a followup question that can separate amounts).
(You are absolutely correct in the movement of funds. My plan last year was to dollar cost average (remember the 2023 drumbeat of UPCOMING RECESSION) the Roth conversions with monthly direct transfers from 401k to Roth IRA. The $5000 was the initial transfer, but the process was cumbersome as Fidelity requires this to be done by phone. That's why the rest of the year I did the conversions exactly as you described since all the transactions could be done online.)
