Thanks for your detailed explanation. "Step by Step" did not ask me to put the year end Traditional IRA amount, so I had to enter in the "Forms" screen of IRA Information Worksheet Part 1 line 2. This also auto populated the same amount n Part IV line 18. By manually adding end year Trad. IRA, Part V line 35 (Conversion contributions taxable at conversion) auto populated the entire Pre-Tax amount that was rolled over from 401K to Traditional IRA, and the Federal Tax amount has increased considerably. I may have to try filling the worksheet 1-1 of Pub. 590-B to see why it is still giving me incorrect answer. Any suggestions on what I may be doing wrong would be greatly appreciated.
