I completed an in-plan Roth rollover (conversion). The 1099-R indicates code G (rollover). I answered that it was a retirement plan in-plan conversion in the answers. The resulting 1099-R form in TurboTax correctly indicates that it was an in-plan Roth Rollover (IRR) on line B7. The AGI including the conversion exceeds the limit for Roth IRA contributions. IRS 590-A, Worksheet 2-1, indicates that the amount of the Roth Conversion is subtracted from the AGI to determine the Roth IRA MAGI. That places my MAGI well under the cap.
However, TurboTax does not subtract out the amount and indicates that our Roth IRA contributions are excess contributions. Am I missing something in the way I am entering it or is TurboTax's MAGI calculation, which is all done in the background and can't be confirmed, incorrect?
