I am converting my employer 401(k) to a Roth IRA with annual transfers. I do a rollover from the 401(k) to a Rollover IRA and subsequently to the Roth IRA within 60 days. My problem is the 401(k) transfers include a nondeductible portion that is still being taxed (I had both nondeductible and pretax contributions over the years and Fidelity must ratio them into any rollover). For example, a $50,000 transfer from the 401(k) includes a $2000 nondeductible portion. When I enter the $50,000 1099R information includingthat the taxable amount should be $48,000, I end up with the full $50,000 on line 4b of my 1040. 1040 4a should be $50,000 but 4b the taxable portion, should be $48,000 (Form 8606 populates the field of course). I see advice to add a second 1099 but it doesn't seem to work if you answer the IRA questions honestly. I tried the override of Form 8606 but that prohibits E-filing unfortunately. Any assistance would be greatly apprectiated.
