I couldn't get Turbo tax to acknowledge that the withheld tax portion was taxable at all, no tax was charged on the 1099 R and no penalty was assessed.
For example 1099R Gross amount was $3,500, tax withheld was $600, the actual rollover amount was net the tax of $2,900 to the new IRA. Box 2A showed the full $3,500. Box 7 showed "G" as a direct rollover.
No Roth involved at all, It went from an employee 401k plan to an individual retirement account.
So Turbo tax did not tax the $600 or put a 10% penalty on the $600 either.
I was wondering why Turbo tax did not pick this up.
