The code 7 Form 1099-R was correctly issued by the financial institution. Enter the Form 1099-R as received under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan withdrawals (1099-R). In the follow-up indicate that some or all of the distribution was RMD, that part of the distribution was RMD, then indicate the actual amount that was RMD (presumably half of the gross amount). Later, indicate that you move d the money to another retirement account (or returned it to the same account), that you did a combination of rolling over, converting or cashing out the money, then indicate the amount that you rolled back into the IRA. It doesn't matter that the distribution occurred in 2017 but the rollover was completed in 2018, it's still a rollover of this portion of your 2017 distributions.
