Retirement tax questions

I am confused by your question, you may also be confused.

 

You can make IRA contributions up to $7000 (if you are over age 50).  You must also have compensation from working.

 

A rollover is not considered a contribution and is not part of your $7000 annual limit.  If you did a direct rollover (direct from plan A to plan B) then enter the 1099-R and when asked what you did with it, select that you rolled it over to another qualified account.  It's perfectly OK to have a $3144 rollover from plan A to plan B and also $7000 of new contributions to plan B, because rollovers are not counted in your contribution limit.  

 

If you received a check from plan A, that is considered an indirect rollover.  You had 60 days to contribute it to plan B, but you must tell plan B that it is a rollover when you send them the money.  They may have a special form for you to fill out.   If you received a check for $3144 from plan A, and deposited $7000 into plan B, you can treat it as a $3144 rollover and $3856 of new contributions, as long as you completed the rollover within 60 days.  

 

If you did not tell plan B it was a rollover, or if you waited more than 60 days, then you don't have a rollover.  You have a taxable withdrawal from plan A, and $7000 of new contributions to plan B.  You will also owe a 10% penalty for early withdrawal from plan A unless you are over age 59-1/2.