@mjpalluck , based on the numbers that you provided, I assume that the Form 1099-R shows $66,700 in box 1. In TurboTax you must enter the Form 1099-R as received, indicate that you moved the money to another retirement account (or back to the same account), that you rolled over part of the money and that you rolled over $54,000. The result will be that $66,700 is included on Form 1040 line 4a, $12,700 is included on box 2a and the ROLLOVER notation will be present. The $6,700 shown in box 4 of the Form 1099-R will be credited on Form 1040 line 25b to be applied against the tax liability determined on your tax return.
(If they instead withheld exactly 10% for federal taxes, I would expect the amount included on line 4a would be $66,667 and the amount on line 4b would be $12,667.)
