My client took a full distribution of their ESOP when they left their former employer. They received a 1099-R that had distribution code 1 (early distribution, no known exception) in Box 7. However, they took the full amount of the distribution and rolled that into an traditional IRA within 60 days. ProSeries basic is calculating taxes on the distribution that was properly rolled over. There seems to be no way to enter this rollover other than to override the distribution amount on the face of the 1040.
What is the best way to enter this in Proseries Basic so that it accounts for the rollover?
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