Your last post confuses the traditional distributions with the Roth IRA distributions. The Forms 1099-R for the recharacterizations (codes N and R) are from the Roth IRA(s). The Forms 1099-R for the Roth conversions are from the traditional IRAs (code 2). The distributions from the traditional IRAs are coded with "2" to indicate that the traditional IRA custodians knew that the distributions were not subject to any early-distribution penalty because they knew the they were deposited into Roth IRAs as Roth conversions.
If you are seeing a taxable amount of $268 (or $286, you've variously said both for the amount of earnings) on 2019 Form 1040 line 4b, everything is likely correct. Form 8606 should show:
- Line 1 = $6,000
- Line 2 = $1,000
- Line 3 = $7,000
- Line 13 = $7,000
- Line 14 = $0
- Line 15a = $0
- Line 15b = $0
- Line 15c = $0
- Line 16 = $7268
- Line 17 = $7000
- Line 18 = $268
Form 1040 line 4a should show $10,536 and line 4b should show $268.
($10,536 = $3,268 + $6,268 + $1,000)
