When you enter your 1099R, there will be some questions that will correct this. One page you see will ask what you did with the money (see screenshot). Click on the top one and then choose the appropriate answer below. Here's how:
- Federal
- Income & Wages
- Retirement Plans
- IRA and Pension Plans.....update
- Edit your 1099 if you have already entered it
- Click continue until you come to the page in the screenshot
- Click on the top one and then choose the appropriate answer below
If you have other questions about this, ask in the comment box below.