This is the heart of the problem. Yes, TurboTax used the ‘simplified method’ and it is possible that one or more of our interview answers led it to do this. I certainly would have found a way to decline using that method had it said anywhere that it would override the box 2a information!
We have no after-tax basis in the fund, and I would have so indicated had I been asked.
I will be filing to recover the penalty and interest costs from TurboTax.
