After reviewing and researching this issue over the past year or so.
The 2010 form appears may have been correct (except for the $10K of Non-deductible IRA contributions for earlier years that may be lost BASIS), because only half of the amount distributed on a 2010 Form 1099-R was converted to a ROTH in December 2010.
The other half was reported as a recharacterized contribution to a new Traditional IRA in/on January 2011 Form 5498.
A Form 8606 was filed with my 2010 Return where $4K of BASIS was depleted.
Does this help clarify this issue any?
