This actually did not resolve the issue. Here is what I did. Note all of these transactions were done with AFTER-TAX dollars and at no point was any of this going to be deductible. These are all non-deductible transactions as my MGI is too high:
Nov 2024: Funded Traditional IRA with $7,000 at Bank A.
Nov 2024: Removed above as excess contribution ($6,994, as the account lost some value) from Bank A, as I am going to move to a new financial institution. Transferred these funds to Bank B.
Dec 2024: Funded Traditional IRA with $7,000 at Bank B.
Dec 2024: Immediately converted the Traditional IRA at Bank B to Roth IRA at Bank B.
The 1099-R from Bank A is showing the $6,994 as a Taxable Amount in Box 2a. There is simply no way to get this excluded out of my taxable income that I can see - I've done everything that I can do. The only way to exclude that $6,994 is to replace Box 2a on the 1099-R with $0.
