Spouse had to rollover her Pension in Merrill inc when she left her job. We did so and got a 1099-r. do i input this also under ira contributions.

As i was saying i put this in under income for the rollover as a 10999r and i need to know if i have to also include it under ira contributions. Near the end of this part of it ask me to put in box 7 what kind of distribution this was.  i chose a rollover to an ira with the same company Merrill lynch edge. if i do that i will get penalized and lose 2000.00 plus dollars in penalties.  Do i need to do this.