Support feedback: In IntelliJ v4, this used to work correctly, but ever since v5 (I think) it's been broken. It's basically just an annoyance, but I figured I'd report it since I've been expecting it to be fixed now for the past three versions and it hasn't been... Basically, I've gotten into the habit of always completing my braces before I populate any nested code (this is so I don't lose track of where braces need to go...) Here's a description of the issue (where you see <enter>, it means hit the enter key, where you see <cursor> is where the cursor ends up after hitting the enter key): This produces: So far, so good. Then I do this: Here's where the formatting problem occurs. I end up with this: Like I said, it's more an annoyance than anything else, but since try/catch is a very commonly used construct, always having to fix this is really a pain.