Was deposited within 60 days. Going back and forth with the bank and Vanguard it turns out that it was an indirect transfer. Vanguard says that the bank should not have issued 1099-R that qualifies the transaction as a distribution. But it slipped in the conversation that there were some forms I should have filled out for Vanguard.
The best solution would be for Vanguard to re-qualify the transaction and give me the 5498 form (their tax dep-t will be involved which is not certain whether they will do it). Meanwhile I am sending to IRS my statement with as much documentation as I got.
Caution for taxpayers: careful with indirect rollover, double-check all steps of the transaction.
