No, this was not necessarily a bank error. Even though your Form 1099-R shows that you
received an early distribution, as long as you deposited the full amount of
your distribution into the same type of IRA at another financial institution
within 60 days, your distribution will not be taxable on your return.
Enter your Form 1099-R just as it is written into
TurboTax. Initially, you will see a
screen indicating that “you are paying
additional tax on your distribution”, but that will be taken care of as you
answer the follow-up questions.
Keep moving forward through the screens until you see the
question, “What did you do with the
money?” with the choices of moved the
money to another retirement account or did
something else with it. Select the
option showing that you moved the
money to another retirement account and then answer the question that
appears below that applies to your situation.
This will take care of determining that your rollover should not be
taxable on your return.
Then, when the Form 5498 is issued, the IRS will compare
that information with your return and know that the amount was rolled into
another IRA and was not just distributed to you for another purpose.
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