At the beginning of the year, I made a $7,000 after‑tax contribution to my IRA and then converted that amount to a Roth IRA. Later in the year, I received a rollover from qualified retirement accounts into my IRA. According to IRS rules, the pro‑rata rule is applied based on the IRA balance at the time of conversion. Since my conversion occurred when my IRA held only after‑tax dollars, it should be tax‑free.
However, TurboTax isn’t accounting for the specific dates of my transactions and is treating the conversion as taxable. I need a way to override or manually adjust the dates in TurboTax to correctly reflect that my conversion is non‑taxable.
