1099- R with box 7 containing U, but all monies were rolled over within 60 days

[RickAL]

When I enter my 1099-R details Turbo Tax DOES NOT ASK IF I ROLLED IT OVER--which I am assuming is because of Box 7 - being U.  The only thing I can do is actually enter the total amount as an IRA contribution.  So now I am getting a tax benefit -- it doesn't seem correct.  Please advise on how to accomplish this filing correctly.  thank you in advance.

[dmertz · Accepted solution]

Code U indicates a dividend distribution from ESOP shares.  Such a distribution is NOT eligible for rollover.  Depositing these funds into an IRA constitutes an ordinary contribution to the IRA and must be entered as such under Deductions & Credits.  If the result is an excess contribution, you'll need to resolve the excess, typically be requesting an explicit return of contribution.  Assuming that the IRA custodian coded the deposit as a rollover, requesting a return of contribution will require convincing the IRA custodian that this was a failed rollover and was therefore an ordinary contribution that can be returned.