I had employer contributions that were not vested when I left a recent job. On the 1099-R the Distribution Code in box 7 is 1B. The gross distribution in box 1 is $0.00. Box 5 is the only box that has an amount. After filling in the information in TurboTax, the next screen says 'About the Money You Took Out of This Account' and says 'Based on the code you entered in box 7 of this 1099-R, you're paying extra tax on this money.' Since I wasn't vested the company took this money back and I didn't get any of it. Since box 7 on my 1099-R says 1B, I selected 1 in the first dropdown in TurboTax and B in the second dropdown. Am I doing something incorrectly to get this message from TurboTax?
