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TP made a 6K Backdoor Roth conversion (a non-deductible IRA contribution that is converted to a Roth IRA. I'm not sure I understand the entries required on ProSeries or if I'm doing it correctly.
TP Opened an IRA (no other IRAs) w/ 6K and converted to Roth IRA same day (closing the IRA).
1099R Dist Code 2 for 6K is marked Taxable amount not determined and total distribution. I entered 1099R and then at the bottom of the worksheet selected B5 (Full amount of distribution was converted to a Roth IRA.
The 6K is entered on 8606 Line 16 & is taxable.
The transaction increases tax by about 2K. Just want to know that I'm handling this correctly.
IMO, I'm not sure it's worth spending 2K in taxes to get 6K into a Roth
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