Thank you, very much appreciated. So, for the case when I enter it "correctly" documenting a conversion vs a rollover, why would I have to pay nearly $4K total in taxes (Federal/State) on that contribution when I already paid taxes on the Traditional IRA contribution (non-deductible) that I immediately transferred over to my Roth IRA without realizing any capital gains? That just seems insane, why would I even put any money into my IRA accounts at that point? Just doesn't make any sense. If indeed I need to report as a conversion and assuming Turbo Tax software is correct, I guess I will stop contributing to my IRAs at all, which seems to defeat the purpose of a backdoor Roth IRA, or an IRA at all for that matter. Yes, my income is in a decent place now, which is preventing direct contribution to my Roth IRA, but that is transitory. I don't know why the IRS/government needs to make this so difficult and like voodoo math. I'm certainly paying my share of taxes already.
