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@rbynaker wrote:

I'm not a financial advisor so I'm not up on all the crazy hybrid schemes out there.  How can there be an IRA where the bank can determine the basis?  All IRAs are aggregated for tax purposes so any one bank issuing a 1099-R would have no way of knowing for certain (not certain enough to report it on a tax form anyway) whether or not the taxpayer make a non-deductible contribution to an IRA at another bank.

 

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That was my original thought too, but then I looked up the Instructions and there are a few odd situations where it could be different.  

Because (a) ProSeries and TurboTax use the same 'tax engine', (b) Intuit wants TurboTax as dummy-proof as possible and (c) 99.99% of IRAs the full amount would be "taxable" on the 1099-R, I think Intuit erroneously forces the full amount to be taxable if the IRA box is checked.