TurboTax 2024 Premier Desktop
In 2024, I converted about $200,000 from Traditional IRA to Roth. Forms 5498 and 1099R were filled out.
Distribution code on Line 7 (1099) shows 7. IRA/SEP/Simple is checked.
Using TurboTax Premier, it calculates (Form 5329-T) that I have about $190,000 of excess contributions.
I am then penalized 6% more in taxation on that excess in the T-Tax calculations.
This should not be characterized as excess contribution since it was a Conversion from Traditional to Roth.
I am old enough that RMD's are required on the Traditional IRA, if that makes any difference in these rules.
