My wife contributed post tax (non-deductible) money to an IRA back in 2008, and we logged the basis for that with form 8606. In 2021, we finally converted that IRA (original amount + market gain) to a Roth IRA.
The original IRA from 2008 was through Fidelity, but the Roth conversion happened with our advisor from a different company. A 1099-R was generated by our advisor's company, but it is not correctly reflecting the market gains associated with this conversion as taxable income. When I work through the TurboTax interview, it is consistently showing the full converted amount as tax free, when I'm fairly certain the market gain from the original IRA should be taxed as income. TurboTax seems to be arriving at this decision based on data entered in the 1099-R box 7.
Is there a way to account for the market gains from that IRA without modifying the 1099-R from our advisor? I believe I owe tax on the gross distribution on the 1099-R minus the cost basis for the original IRA.
