I made a non-deductible $20,000 contribution to my 401K in 2021 and then transferred it immediately to my brand new Roth IRA at Fidelity (I have another Roth IRA from many years ago). This is the so-called “mega back door” IRA and I can contribute up to $58,000 per year. I entered the relevant 1099-R into Turbotax and it says my Roth IRA contribution is over the allowed limit of $6000 and I must pay a penalty. How can I get turbotax to recognize the higher $58000 limit and NOT use the $6000 limit ?
