Since that bug has existed for years and I just reported it yesterday, I would not expect a fix anytime soon.
This probably affects very few users however, because it is unusual to make the *first* non-deductible contribution to an IRA and then take a distribution in the same year, AND have non-zero value IRA at years end.
Most taxpayers would not put the new money into the IRA in the first place if they were just going to take a large distribution and would be unable to remove that same contribution tax free because of a year end balance.
Those doing a real "backdoor Roth" do not run into this problem because a backdoor Roth requires a zero balance Traditional IRA at the start and a zero balance at the end so the lack of the questions makes no difference.
Not to say that this is not a serious problem that can (and probably has) caused some unknowing taxpayers to have underpaid their tax when they had a scenario like yours. It also prevents the pro-rated basis to be passed to future years that will result in overpaying tax for all future distributions.,
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
