Distribution from Traditional IRA shown on 1099-R was rolled back into IRA within 60 days. TurboTax shows rollover as Excess Contribution to Traditional IRA.

[601pilot]

Distribution from Traditional IRA in 2020 shown on 1099-R was rolled back into IRA within 60 days as shown on form 5498.  TurboTax is generating a Form 5329 and showing the rollover amount as an excess contribution to traditional IRA and generating a 6% tax on the rollover amount. 

How do I rectify this issue with the rollover amount being shown as an Excess Contribution?

[DavidD66 · Accepted solution]

After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"? See Screen Shot below.

Be sure you indicate first that you "...moved the money to another retirement account (or returned it to the same retirement account)."  and the you "rolled over all of this money to another IRA or other retirement account (or returned it to the same account)."

If you reported your rollover as a 2020 contribution, you need to delete that.