Code 2: Early distribution (except Roth IRA) exception applies
Code G: Direct rollover and rollover contribution
from tIRA to Roth IRA, is Code 2 correct?
My situation:
tIRA was opened last year to handle the overqualified Roth IRA contribution. No previous balance/value. After recharacterization and conversion, the balance/value is zero.
All money are after-tax.
On 8606, the taxable amount is the (box 1 on tIRA 1099-R )-$6k(2021 Roth IRA)=taxable amount.
My questions:
1. (box 1 on tIRA 1099-R) is for 2 years 2020 and 2021 since recharacterization and conversion happened in 2021 calendar year; $6k is for 2021 ROTH IRA contribution only. How to use the 2020 $6k ROTH IRA contribution?
2. With 8606, Turbotax still adds (box 1 on tIRA 1099-R) as taxable income, ignores the $6k.
Thanks!
