Not all legal settlements need to be reported. You should double check.
Here is an article on what legal settlements need to be reported on your taxes.
However, since it's an SEC settlement it is almost certainly a taxable replacement for earnings. If that is the case then you should enter the amount as miscellaneous income. You will enter it as though you had received a 1099-MISC with the amount in box 3. Tell the system you did not receive it in an attempt to earn money and it will put it in as taxable but not subject to self employment tax.
The Roth amount should be a replacement for money that you already paid tax on before you put it in the Roth. You should not report that if that is the case.
@chris6m
[Edited 02/28/23 12:16 PM]
@chris6m
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