1099-R shows wrong value of distribution and taxable amount

[prit]

I converted around $4000 from my pre-tax traditional ira to roth ira in 2024. Thereafter, I made non-deductible ira contribution of $7000 to the traditional ira account in 2024 itself and converted that to roth IRA too.

in the Fidelity 2024 Form 1099-R, Box 1 & 2a both show the sum of my non-deductible traditional IRA contribution for 2024 and also the traditional ira to roth ira conversion amount i.e. $11,000.  Fidelity says they cannot correct the 1099-R to show $4000. In this situation, should I enter the $11,000 amount in Turbo tax or the $4000?

[dmertz]

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.