It turns out that the code in box 7 of the 1099-R for the Roth Conversion is key. If it is a 7 - Normal Distribution then turbo tax calculates the MAGI as expected for determining allowed Roth IRA contributions. My code in box 7 is a G – Direct Rollover and Direct Payment. Turbo Tax handles this differently. I don’t know the nuances of all the box 7 codes. I will assume turbo tax knows what they are doing!
