@Khill74 , in 2021 TurboTax this is entered as basis in 2016 and prior conversions. TurboTax treats this amount the same a regular contribution basis and omits it from Form 5329 line 1 when determining the amount of an early Roth IRA distribution that is subject to penalty. Distributions in 2021 of funds attributable to Roth conversions that were taxable and done after 2016 would be subject to the 10% early-distribution penalty.
TurboTax tracks the year and amount of taxable and nontaxable Roth conversions until they have met the 5-year holding period for conversions, at which time all of conversions that have met the 5-year holding period are lumped together in this tracking.
