I know I am doing the *taxable* amount correctly, but as the guidance on *total* is a bit murky, and I am not sure that I am doing it right.
I have my spreadsheet set up as including 1099-R, line #1 (Gross Distribution), with the codes (there maybe other codes, but these are the only ones I get):
(1) -> TIRA distribution
(2) -> Roth conversion
(J) -> non-qualified Roth distribution
(N) -> Roth recharacterization done this year corresponding to conversion done this year
(R) -> Roth recharacterization done this year corresponding to conversion done last year
I figure that if it's listed as "Gross Distribution" for a tax year, it needs to go into the total, unless it is being rolled over, so the formula (G) is:
(G) = (1) + (2) + (J) + (N) + (R) - (RO)
(RO) -> anything corresponding to code (1) or (J) that gets rolled over
As for net amount of the Roth conversion (i.e., that gets added to the conversion basis), which goes on form 8606 line 16 (C), and the *taxable* distributions (X), I use the formulae:
(C) = (2) - [ (N) + (R*) + (NIA+) - (NIA-) ]
(X) = (C) + (1) + (J*) - (RO)
(J*) -> form 8606, line 23 that is NOT attributable to 5-year conversion basis
(R*) -> (R) that happened in the next tax year corresponding to conversion done this year
(NIA+) -> Line 2a (Net Income Attributable) for distribution code (N) & (R*)
(NIA-) -> Net Income Attributable that is a loss (i.e., this value is the absolute value of that loss) as specially documented by the custodian, corresponding to distribution codes (N) & (R*)
I always include a special memo that lists all the inputs to and result of the calculation of (C).
