Retirement tax questions

"BACK DOOR ROTH" filing is NOT well know, so even Brokerage people file 1099-R wrong when I ask them to roll my post-tax deposit to IRA and then immediately roll to ROTH.  So be aware they put on all 1099-R box 7 code "2" which is like saying 'You took $7,000 out to go casino or shopping mall". 

Your job is to correct into a "Back Door Roth".

If leaving code "2" on 1099-R, I get tax 24% of the $7,000, or $1,680 added instantly to my total TurboTax due box.  This is wrong since $7,000 is post-tax (it came from my WellsFargo, so it's post-tax or already tax). So by converting to Code "G: DIrect rollover and rollover contribution" (not "H: Direct rollover of a designated Roth account distribution to a Roth IRA"), it prevents 24% or %1,680 from adding to my total tax. 

Note if IRA $7,000 already there, then it's a "Conversion" true,

but if it's deposited and "then backdoor Rollover to Roth" then it's a "G: Rollover" and so a "Backdoor" since it prevents from being taxed again.  My Broker said broke must generate a "2: taxable distribution", but it's your job as tax filer to "Change" it to whatever since ONLY you know what is up (which is a case of Back door Roth).  He is familiar with Backdoor Roth rollover and said you MUST/SHOULD/ALLOW change 1099-R box 7 explains what you doing. 

Do not leave it a "2" since it means it's a distribution and IRS taxes you and thinks you take it out to go shopping with the $7,000, which is not the case. 

Make sure you print and manually file 8606 (Turbo Tax buggy, will not generate 8606), as Amend 1040SX if you e-file with TurboTax.  If you print and file, then simply insert form 8606 and mail to IRS.