I received 1099R from Fidelity for the above distribution. Box 7 has code 2, with IRA/SEP/SIMPLE box checked. This is identical to my other 1099R from another traditional IRA which I used for Backdoor Roth conversion. After both were imported into TurboTax Home&business, they were treated the same, i.e., both were declared non-taxable. I knew better, as SEP contribution is clearly pretax and needs to be taxed on distribution, but I cannot convince TurboTax. I found by changing the box 7 code to G, and uncheck the box for IRA, TurboTax will now tax this, but when I call Fidelity, they refuse to make a corrected 1099R for me, and insist that they made the right version and it was TurboTax that needs to be fixed. Then I stayed on the phone for a TurboTax representative for 1 hour and still could not figure out how to do this, short of changing the code. Would appreciate your professional suggestions!
