One additional clarification: If the financial institution does finally recognize their error and issues a corrected Form 1099-R showing a gross distribution of $0, you would still omit the corrected form from TurboTax.
Make sure that you retain all documentation relating to the movement of these funds, particularly anything that shows that the payment was made directly to the new Roth IRA, in case the IRS questions the reporting of the transaction. Absent such documentation, the IRS could assume that a distribution occurred. Because it was a trustee-to-trustee transfer, there should be no Form 5498 from the new IRA reporting receipt of a rollover, so you'll need to have documentation that supports your position that the transfer was completed.
