We received 27 pay checks in 2020 that raised our MAGI, so we had to re-characterize 3,880 of our 6k contribution from Roth IRA (plus earnings) to Traditional IRA. I filed the 8606 for the re-characterization in 2020 tax return. Then in 2021, I converted the 2020 contribution 3880 (non deductible) (plus earnings) to Roth IRA. Then waited a week or so, contributed 6k for 2021 to Traditional IRA and then waited a day or two and rolled that over to Roth IRA.
I received two 1099-R forms -
1. 1099-R for the re-characterization (box 7 has R) - I've read that I don't need to amend my tax return for 2020 since I already filled out 8606 before filing 2020 tax return (so I can ignore this 1099-r form).
2. 1099-R box 7 has 2 - so I need to claim this on my 2021 tax return (this includes, the 3880 non deductible contribution, plus earnings on the 3,880 for 2020 and 6k for 2021 non deductible.
I already did the 8606 form for the 6k non deductible for 2021 and cost basis of 3880 for 2020.
However, I try to enter 1099-R and receiving a message that I must break my 1099r into two for rollover and conversion.
I get to 'What did you do with the money from 1099-r'and I select 'moved the money to another retirement account(or returned to same account)' then 'did a combination of rolling over, converting, or cashing out the money' I enter 9880 (for the rolled over to another retirement account )3880 for 2020 and 6k for 2021) and then 6193.05 for 'amount converted' and hit continue - it tells me I must break my 1099r into two separate translations and delete the current 1099r.
Why is this? I've read all over and followed the directions, which seems it should work...thoughts?
