In 2012 I contributed 12,000 (2011 and 2012 contributions) of the after tax dollars to my contributory IRA, and straight after that converted total amount to Roth. Yesterday I received 1099R where I have:
box 1. Gross distribution $12,000
box 2a. Taxable amount $12,000
box 2b. Taxable amound not determined.
Is that correct? Does that mean that I have to pay taxes on the distribution amount even though it was distributed into Roth and already taxed? The form doesn't indicate anywhere that I did a conversion.
I called Schwab (where my IRAs are), and they said that I will receive the document on conversion in May. When I asked how to file tax return in April - they said that IRS would know that the money was converted. I don't believe that.
What do I do?
Tax Gurus please help!