I didn't realize that you are still within the 60 days of the distribution. Yes, you can roll over the $500 by using money from any (non-retirement) source to complete the rollover of the entire amount of entire distribution. Then you won't have to enter the $500 in the Retirement Saving Contributions Credit section this year or any other year. Make sure the receiving IRA custodian records it as a rollover contribution, not a regular contribution. And yes, if you roll over only $300, the other $200 will still affect your Retirement Savings Contributions credit through 2020.
