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Retirement tax questions
I agree, it appears that there is nothing wrong with this Form 1099-R. In this case the reporting indicates that the distribution was paid to you, not directly to a different retirement account. As a result, a minimum of 20% was required to have been withheld for federal taxes and is shown in box 4 of the Form 1099-R.
Enter the Form 1099-R exactly as received, indicate that you moved the money to another retirement account, then indicate the amount of the gross that was rolled over. Generally the amount rolled over would be the gross amount shown in box 1 minus the federal and state tax withholding unless you substituted other funds to include in the rollover some of all of the amount withheld for taxes. TurboTax will exclude the amount rolled over from the taxable amount reported on Form 1040 line 4b and will include the word ROLLOVER next to this line. TurboTax will also credit the federal and state tax withholding on your federal and state tax returns, respectively.