Thank you. What the Broker did was roll the shares back into the IRA, but he rolled them in at the cost basis of the day they were put back in the IRA. They have given me 1099's for the full amount of the original withdrawal, and say they will do 5498's in May or June, showing a rollover of the market value (which was less than the market value of the original withdrawal) when the shares were moved back into the IRA. (Basically made it look like a cash payback, I guess.) They have already given me the 1099R's with the full amount.
Based on this, it looks like I should show what the 1099's show in line 4a , and show on line 4b (taxable amount) the difference between Market Value when taken out and Market value when put back in, which was about 8% less than the original distribution (but same number of shares). This would be marked as "Rollover". The shares put back in were not purchased, they were the ones taken out, but I have been using average cost in taxable cost for 20+ years, to much to keep track of, and we rarely sell anything.
Does this sound right IF they do the 5498's showing a rollover of the market value when put back in? (As to the 8606, I have other IRA's, and I will apparently have some taxable income from this transaction. However, it will be the same as if I had sold the shares, then repurchased them with cash inside the IRA?
(Thank you for your earlier response, I think I got some bad advice from the broker, would have been clearer is I had sold them in the taxable account and transferred the cash back into the IRA and bought the shares then I guess.)
