Just enter the 1099R and answer the questions. It will ask you what you did with it. Say you moved it to another account. What code is in box 7? It will be taxable but there should not be any penalty. It should be straight forward to enter. Be sure to check the little IRA box that's between boxes 7&8.
Enter a 1099R under
Federal Taxes on left
Wages & Income
Then scroll way down to Retirement Plans and Social Security
Then IRA, 401(k), Pension Plan Withdrawals (1099-R) – Click Start
