Understood.
I did speak with my financial advisor. The first company who owned my traditional IRA and submitted the 1099-R did not take taxes out on the transfer, so they submitted the 1099-R as an IRA to IRA transfer that is non-taxable. The second company who accepted the transfer and opened up my Roth IRA did not take taxes out either, because doing so would have meant that I would pay a penalty on the money because I'm under the age of 59 1/2. They sent me a 5498 showing the Roth IRA conversion amount (which matches the distribution amount from the first company) but will not be sending me a 1099-R either. Essentially, the transfer went in properly, but neither companies have actual documentation to prove that taxes should be taken out on the full amount transferred. It's just a notation on a form that isn't even used for Turbo Tax purposes.
I think I will have to opt for your second option, where I put in the corrected amount for box 2a, which should show that the full amount is eligible to be taxed and then send in as much documentation as I can to back up why I did that. I just don't want to wind up in a situation where I'm not properly accounting for those conversion taxes and am audited. I'm actually trying to do the right thing here 🙂
Thanks!
