This is a question for dmertz, since I have a case that is almost the same as the one described in this post, only big difference is there were other funds in Traditional IRAs.
I mistakenly made a contribution to a Traditional IRA in April 2019 for year 2018, filed taxes and IRS disallowed the deduction because I had a 401k at work. I got a notice and paid the corresponding tax due. TurboTax CPA advised to "recharacterize" the contribution to Roth. Financial institution argued that this was a conversion, not a recharacterization, even though they were made for the same year and a few days apart.
I received the 1099-R in January with a "2" in Box 7 and the full amount as "taxable". If entering "as is" in TurboTax, it is taxing the entire amount of the conversion again and more, due to the preexisting IRA balances.
Any suggestions?
