I have a client that does a backdoor Roth every year.

In 2021, he contributed $7k to a traditional IRA in April and designated it for 2020. He contributed to a 2021 traditional IRA in August of 2021 another $7k. So $14 was contributed in 2021 traditional IRA but $7k of it was designated for 2020.

He then converted both to Roth IRA in 2021. So for 2021 he received a 1099R showing a $14k distribution from traditional IRA, and 5498 for 2021 showing a $14k roth  conversion in box 3.

I advised that only $7k per year conversion allowed for Roth, so the additional $7k is taxable as a regular distribution. In addition, he over contributed to the 2021 Roth and incurred penalty.

Both he and his broker insist that there is no taxable event here.  Inputs into Lacerte plus reading of the tax regs seem to confirm my position but I want to make sure I'm not missing something.

This is not a mega backdoor Roth, which is the only thing I could think of that might allow it.

Thank you.