In 2024 I did a rollover of after-tax contributions from my 401K to a new Roth IRA. Several months later I took a distribution from this Roth IRA for an amount that was about 25% of the rolled over amount. I got two 1099-R forms for 2024. One was for the rollover of after-tax 401K contributions which show on Line 5 in the 1099-R. The 2nd 1099-R showed the Roth IRA distribution with a Box 7 code of T.
TurboTax has my 2024 Roth IRA distribution as a taxable amount. It will not populate Form 8606 Line 24 with what I believe to be the basis from my rollover. So this basis does NOT get subtracted from the distribution amount in Part III of Form 8606.
I am convinced by reading IRS docs, that my distribution, although non-qualified, is NOT taxable. Is there a bug in TurboTax?
