dmertz
Level 15

Retirement tax questions

Both Forms 8606 are correct.  The asterisks indicate that TurboTax is using Worksheet 1-1 From IRS Pub 590-B to calculate the nontaxable amount because both a contribution and a distribution during the year.

 

The $0.01 rounds to zero in the whole-dollar calculations, so your entire basis was applied to the Roth conversion.  (If the calculations were done to the penny, yes, you would have $0.01 in basis remaining, but TurboTax does the calculation in whole dollars as permitted by the IRS.)