Thanks for your response. This is not about any IRA at all. This is about 401(k). My plan allows contributing to 401(k) beyond the standard pre-tax $19,500. So I contributed say $1000 on an after-tax basis (in addition to $19,500 pre-tax) and immediately converted $1000 to Roth 401(k). This resulted in 1099-R (which I expected). I entered this 1099-R in TT and TT showed that $1000 is non-taxable because it was contributed on an after tax basis. So far so good. But after entering all this, TT asks me the question that I shared in my original post. I don't understand why TT is asking me this question when I have already told TT what the distribution was, how much contribution was made and TT has already determined that it is not taxable.
