Fidelity prepared the Form 1099-R correctly.
First, to add to your basis in nondeductible traditional IRA contributions you must enter the $7,000 nondeductible traditional IRA contribution made for 2024. TurboTax will include this amount on line 1 of Form 8606.
Second, when entering this Form 1099-R into TurboTax, you must enter the Form 1099-R exactly as received. When asked, indicate that you moved the money to another retirement account, that you did a combination of rolling over converting and cashing out, then enter the amount that was converted to Roth, approximately $11,000.
TurboTax will prepare the remainder of Form 8606 to calculate the taxable amount of your Roth conversions (approximately $4,000 if you had no other funds in traditional IRAs at the end of 2024), will include the approximately $11,000 on Form 1040 line 4a and will include only the taxable amount on line 4b.
