In Feb 2023 I contributed $12,500 to a traditional IRA. ($6,000 for 2022 and $6,500 for 2023).
I did backdoor Roth IRA for the entire amount. I have form 8606 from last year (2023) for the (2022) $6,000 contribution. My total basis in 8606 line 14 is $6,000
This year I get my 1099-R and it says I contributed $12,500 in 2023. Makes sense. But when I click through the deduction portion and add my $6,500 contribution (on it's way to report via backdoor), it's saying that because the total basis from last year (2023) is $6,000, and I made an excess contribution and therefore will owe a 6% penalty.
There is no money in the traditional IRA anymore, it's in the Roth IRA.
What do I need to do differently so the penalty does not show up? Surely there is a way to tell which contribution was for which year?
