I over contributed to my traditional IRA last year. This was then converted along with all my traditional IRAs into Roth IRAs in 2010. Then in 2011, I recharacterized the excess and earnings from Roth back to Traditional IRA and then did removal of excess contribution from my traditional IRA and used the excess as a 2011 contribution.
Now I'm doing my taxes and in Turbo-Tax, per their instructions, I manually entered a 1099-R for tax year 2011 with box 7 code P for the removal of excess distribution for the traditional IRA.
Now I'm stuck on the other part, the recharacterization of the excess and earnings from Roth to traditional. I tried to manually enter a 1099-R for tax year 2011 with box 7 code R for the recharacterization, but on form 8606-T, line 16 does not reflect the reduced conversion due to the recharacterization.
I put the total of the excess contribution and its earnings amount in both box 1 and 2a and checked 2b taxable amount not determined to be consistent with the 1099-R for 2010 that had the Roth conversion box 7 code 2 and I did not check box for total distribution.
Is this a bug in Turbo-Tax, or have I entered the second form 1099-R for 2011 incorrectly?
Please suggest how to resolve, I'd rather not just override line 16 of form 8606-T and have Turbo-Tax compute the value correctly.
