dmertz
Level 15

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Expanding on what CatinaT1 said, with the distribution of the $2,000 from the traditional IRA being reported as an ordinary distribution, the movement of these funds to the Roth IRA would have to be treated as a Roth conversion, not a recharacterization, with your regular contributions being $2,000 to the traditional IRA and only $6,000 to the Roth IRA.

 

The bank should have instead processed this as a recharacterization, which was your intent, and reported with code N in box 7.   Depending on whether you have any other funds in traditional IRAs and, if so, whether you have basis in nondeductible traditional IRA contributions, there might not be any difference treating this as a Roth conversion instead of a recharacterization.  If it does make a difference that you are not willing to accommodate due to how the basis is handled on Form 8606, you would have to get the bank to correct the Form 1099-R to have code N in box 7 (and zero in box 2a) or submit a substitute Form 1099-R (Form 4852) showing the code N.  Submitting a substitute Form 1099-R would preclude you from e-filing.