Entering 1099R info for Roth rollover from litigation check

[jsryan793]

 There was a litigation settlement reached for mutual fund fee overpayment for $13.45 and a check was issued for $12.10 payable to my Roth IRA.  I deposited that check in my Roth in August as a rollover deposit.

I received a 1099R for a $13.45 taxable distribution from my Roth IRA even though nothing was distributed from my Roth.   Box 7 has code '7', 2b is checked 'Not Determined'.  $1.35 Federal withholding.

I am using Forms, not the  interview.  When entering the 1099R info on page 2 line B4 is showing the $13.45 amount that may be rolled or converted.  B5 does not apply as it was not a conversion. Where I am confused is line B6.  It asks to enter the amount that was converted to a Roth.  I do not see a line to enter the amount rolled over to a Roth.  

The custodian is telling me they issued the 1099R correctly as a taxable distribution.  I'm not sure I agree with that.

Where do I enter this as a rollover deposit?

Thanks....

[SusanY1]

After you enter the 1099-R as issued, TurboTax will ask additional questions to determine the rollover status.  You will be asked "What did you do with this money?".  At this point in the interview select "[name] moved the money to another retirement account (or returned it to the same retirement account.) 

This will allow the software to treat the amount properly as a roll over. 

[jsryan793]

Using that process places the $12.10 in line B2 as a traditional IRA rollover and shows $1.35 in line B4 as an amount that may be rolled or converted to a Roth IRA.  Nothing shows up in line B6.

It also is flowing $1 to my F8606 as a traditional IRA conversion to my Roth in line 18.

I'm thinking more and more the 1099R was issued incorrectly as a taxable distribution.  Perhaps it shouldn't have been issed at all.

[jsryan793]

A bit more info....   This  settlement distribution was issued from a Roth IRA closed in 2020.  Since it was closed a check was issued payable to the Custodian FBO the Roth IRA.  The closed IRA had not been opened for five years so I suspect that triggered the distribution as non-qualified and therefore taxable.

There is still a conflict though in the check being payable to the Roth and being taxable.  Payable to the Roth is a rollover, I couldn't deposit it anywhere else.