Thanks so much macuser_22. We do greatly appreciate it!!
Created a TEST account in TurboTax desktop.
I am following the steps, and when I got to "What did you do with the money from Vanguard" - I chose - Moved money to another retirement account, then I chose - did a combination of rolling over, converting, or cashing out the money.
For next question - how much of the $ 19.5K TEST moved to IRA, 401K or other retirement account, captured:
7.5K for amount rolled over to another (or back to the same) retirement amount; and $12K for amount converted to a Roth IRA account. Then TurboTax tells me that to report this, I need to enter two separate 1099-Rs, one for the rollover and one for the conversion, and to allocate the numbers of them so the total equal the amounts on the original 1099-R.
Actually tried this and for the 1099-R with 7,5K I used code H - Direct rollover of a designated Roth under box 7. I left the original 1099-R but with 12K and code 2 under box 7. So, this is the part that got me confused as to what the steps are to show this accurately as we created a tax event when we converted the trad IRA from Merrill Edge to Roth at Vanguard in 2021. We wanted to avoid the pro-rata rule as my wife doesn't have any other IRAs, and hopefully we don't owe any taxes on the backdoors as we moved the money from Trad to Roth at Vanguard very quickly. It is also my understanding that we have a basis of 7K as we performed the very first back door at Vanguard in "April" 2021 but contributed for 2020.
Please let me know your thoughts and further guidance.
Have a great weekend,
Thanks,
Ozzie
