I converted $150k from a traditional IRA to an existing Roth (opened over 5 years ago) in 2020. I received a 1099-R showing the distribution. Box 7 was "2" indicating an early distribution with no penalty. This was rolled over directly from the Trad IRA to the Roth (both Fidelity). I was 57 in 2020 and self-employed with Sched C profit of $8500.
When entering the 1099-R in Turbotax I indicated it was a Roth Conversion. TurboTax shows this distribution as NON-Taxable. This seems incorrect to me. It was NOT a backdoor conversion. What would be the reason this would show as non-taxable?
