1099-R Showing Taxable But Aren't

[Don C3]

I rolled over my employee profit sharing IRA to another IRA when I retired.  Two of the 1099-R's I received from my previous employer showed amounts as Taxable and Code U.  When I enter into Turbo Tax I get congratulated that this will not be taxable, yet the running balance at the top of the screen reflects it as being taxable.  How do I fix this?  Nothing was withheld.

[ColeenD3 · Accepted solution]

Ignore the blurb from the program. Code U:

Dividends distributed from an ESOP under section 404(k).

Use Code U for a distribution of dividends from an employee stock ownership plan (ESOP) under section 404(k). These are not eligible rollover distributions.